South Africa’s rand, local stocks, and government bonds fell on Monday as investors dumped riskier assets worldwide on fears of a possible Russian attack on Ukraine.

The U.S. State Department on Sunday said it was ordering diplomats’ family members to leave Ukraine – one of the clearest signs yet that American officials are bracing for an aggressive Russian move in the region.

At 1135 GMT the rand traded at 15.2825 against the dollar, around 1.2 per cent weaker than its closing level on Friday.

That brought to a halt last week’s rand rally on expectations that the South African Reserve Bank (SARB) will raise interest rates this week at its first monetary policy meeting of 2022.

The SARB’s rate decision is due on Thursday, with economists polled by Reuters expecting the repo rate to be increased by 25 basis points to 4 per cent.

The U.S. Federal Reserve also holds a policy meeting over Tuesday and Wednesday, with traders set to scrutinize its statement for clues about the speed and scale of its normalization plans.

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Other potential drivers this week include the SARB’s leading business cycle indicator on Tuesday, December producer inflation data on Thursday, and December budget figures on Friday.

The yield on the South African government’s 2030 bond rose 5 basis points to 9.29 percent, reflecting a price fall.

The Johannesburg Stock Exchange’s Top-40 Index retreated by a little more than 2 per cent.