The South African rand was flat in early trade on Tuesday as investors tracked geopolitical developments and awaited the release of a domestic business confidence survey and a central bank monetary policy review later in the day.

At 0632 GMT the rand traded at 16.37 against the dollar, a whisker away from Monday's close.

The South African Chamber of Commerce and Industry will release its March business confidence index at 0930 GMT, which will offer clues on private sector sentiment towards Africa's most industrialised economy.

At around 1500 GMT, the central bank will publish its Monetary Policy Review, which could shed light on its rate-setting trajectory this year.

Like other risk-sensitive currencies, the rand often takes cues from global drivers.

The local currency has been at the mercy of global market sentiment since the start of the US and Israeli war on Iran at the end of February.

Oil prices fell more than $1 on Tuesday, reversing gains in the previous session, on hopes peace talks between the US and Iran will take place this week and lead to more supply flowing from the key Middle East producing region.

South Africa's benchmark 2035 government bond was weaker in early deals, as the yield rose 2.5 basis points to 8.37%.