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South Africa’s rand fell against the dollar in early trade on Wednesday as risk appetite waned on news of Iranian missile strikes on bases hosting US troops in Iraq, stoking fears of a broader conflict in the Middle East.
Power cuts in South Africa due to problems at state-run utility Eskom also weighed on the rand. The utility implemented rotational power cuts - locally known as “load shedding”- overnight until early morning on Wednesday because of a shortage of generating capacity.
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