JOHANNESBURG, March 31 (Reuters) - The South African rand was stronger on Tuesday, but it was on course to end the month over 6% weaker against the dollar after a selloff triggered by the Iran war.
* At 1429 GMT the rand traded at 17.0050 against the dollar,about 1.2% firmer than its previous close. * The risk-sensitive currency was partly buoyed after thegovernment said it will reduce its fuel levy for one month tostop fuel prices rising even further, in an effort to cushionthe impact of the Iran war. * The rand has been at the mercy of global market sentimentsince the U.S. and Israel started the war in late February andIran retaliated. * The rand had a strong 2025 and had started 2026 on thefront foot, making it vulnerable to a correction. * Analysts say the currency will continue to take itsdirection from developments in the Middle East, though localeconomic data could also influence its trajectory. * South Africa recorded a trade surplus of 36.92 billionrand ($2.17 billion) in February, revenue service figuresshowed on Tuesday. * The central bank reported foreign direct investmentinflows of 41.3 billion rand in the fourth quarter of 2025,compared with outflows of 21.0 billion rand in the thirdquarter. * On the Johannesburg Stock Exchange, the Top-40 index waslast up 1.9%. * South Africa's benchmark 2035 government bondstrengthened, with the yield falling 9 basis points to 9.18%.($1 = 17.0066 rand)
(Reporting by Alexander Winning, Sfundo Parakozov and Nilutpal Timsina;Editing by Joe Bavier)
