The South African rand weakened sharply on Thursday, losing more than 1% against the U.S. dollar as investors moved away from riskier assets. The slide added to pressure on emerging-market currencies, which have been under strain from shifting global sentiment.

Market participants cited a broader risk-off tone, driven by rising geopolitical tensions and renewed concerns about capital outflows from developing economies. In that environment, traders typically favor safer havens, leaving currencies like the rand vulnerable to further losses.

The latest move extended a recent run of weakness for the currency and reflected how quickly external shocks can ripple through emerging markets. For South Africa, a softer rand can increase the cost of imports and add to inflation pressures, even as it may help exporters.

Analysts will be watching whether the selloff deepens or stabilizes as global markets digest the latest developments. For now, the rand remains sensitive to shifts in investor appetite and broader moves in dollar demand.