JOHANNESBURG, May 19 (Reuters) - South Africa's rand weakened on Tuesday as investors monitored developments in the Middle East after U.S. President Donald Trump paused a planned attack on Iran.
o At 1427 GMT the rand traded at 16.7575 against the dollar, 1% weaker than its previous close.
o Trump said on Monday he had paused an attack on Iran to allow time for negotiations on a deal to end the war.
o "The longer this conflict continues, the greater the probability that the rand will succumb to pressure or any further shock to the global economy that might undermine economic confidence and risk appetite," said ETM Analytics in a research note.
o The U.S. dollar was up 0.4% against a basket of currencies, while prices of gold, a key South African export, fell 0.6%.
o Domestic investor attention will be on April inflation data on Wednesday, with analysts polled by Reuters expecting it to accelerate to 3.9% year-on-year from 3.1% in March, reflecting pressures from the war in the Middle East.
o The statistics agency will also publish March retail sales on Wednesday, though analysts say the figures are unlikely to show weakness as they predate the full impact of the war.
o On the Johannesburg Stock Exchange, the Top-40 index was last down 1%.
o South Africa's benchmark 2035 government bond was also weaker, as the yield rose 9 basis points to 8.94%.
(Reporting by Sfundo Parakozov and Anathi Madubela; Editing by Tom Hogue and Alexander Smith)
