The rand made a recovery on Wednesday after a sharp selloff the previous day, which was triggered by escalating conflict in the Middle East.
The rand traded at 16.3975 against the dollar, up about 0.9% from its previous close. The Johannesburg Stock Exchange’s All-Share index was up approximately 1.5%.
The rand had closed down around 2.5%, and the All-Share index experienced a significant drop of 5.5% as investors sought safety amid military actions by Israeli and US forces targeting sites in Iran, which led to retaliatory strikes from Iran in the Gulf region.
Investec chief economist Annabel Bishop noted that one contributing factor to the market rebound was discussions among Gulf countries about responding to Iran’s attacks.
She also highlighted that Saudi Arabia, a major oil producer, was increasing its output and exports to stabilise oil markets.
Bishop said that these factors have improved financial market sentiment somewhat and reduced the perceived need for safe havens,” in her comments to Reuters.
Additionally, there was positive momentum from commodity prices, with key South African exports like gold and platinum experiencing gains on global markets.
As of Thursday, 5 March, the rand is trading at R16.41 to the dollar, R21.87 to the pound, and R19.05 to the euro. Gold is currently valued at $6,167.03 per ounce, while oil prices have risen to $84.13 per barrel.
5 important things happening in South Africa today
South Africans warned to evacuate countries: Dirco has warned South Africans in the Middle East to take “immediate advantage” of the limited commercial flights available out of the region, as heavy attacks are expected to continue in the coming days in the UAE, Qatar, Kuwait, and more. [BusinessTech]
South African banks close branches: South Africa’s largest traditional banks are radically transforming their physical branch networks. According to financial reports from 2020 to 2025, big banks such as Absa, Nedbank, and Standard Bank have collectively closed over 70 branches across the country. [MyBroadband]
Major upgrades to Cape Town International Airport : The Cape Town International Airport (CTIA) is set to receive more than R10 billion in upgrades thanks to the Airports Company South Africa (ACSA). Infrastructure upgrades, including a new, realigned main runway and expansion of the domestic and international terminal buildings, form part of ACSA’s R21.7 billion investment programme across its entire network. [TopAuto]
NHI Pushes ahead: The health department is continuing with its preparations for National Health Insurance (NHI), undeterred by last week’s high court ruling, health minister Aaron Motsoaledi told parliament on Wednesday. [Business Day]
Story 5: The South African National Defence Force (SANDF) has launched a pilot deployment to stabilise gang-affected communities in the Western Cape and disrupt illegal mining in Gauteng, with the full operation planned until March 2027. [TimesLive]
