The rand experienced a decline of over 1% during early trading on Thursday, following US President Donald Trump’s announcement of more aggressive military actions against Iran.
This news unsettled investors who had been anticipating a quick resolution to the ongoing conflict.
The rand was positioned at 17.0250 against the dollar, marking a 1.3% drop from its previous closing value.
In a nationwide address late Wednesday, Trump stated that the United States would be launching aggressive strikes on Iran in the next two to three weeks, claiming they were nearing the “completion of its main strategic objectives” in the war.
This announcement resulted in an increase in the value of the US dollar and oil prices, which reduced demand for emerging market currencies and heightened inflation worries for nations like South Africa that rely on energy imports.
The rand has been significantly affected by global market sentiments since the start of the conflict in February, which involved the US and Israel and Iran’s subsequent response.
Analysts note that the rand had a strong performance in 2025 and began 2026 positively, making it susceptible to a market correction.
Meanwhile, South Africa’s benchmark 2035 government bond remained stable in early trading, with a yield of 8.885%.
As of Friday, 3 April, the rand is trading at R16.95 to the dollar, R22.43 to the pound, and R19.55 to the euro. Gold is currently valued at $4,676.43 per ounce, while oil prices have risen to $109.01 per barrel.
5 important things happening in South Africa today
End of the line for Nissan: Chinese automaker Chery confirmed its acquisition of Nissan’s Rosslyn manufacturing plant in South Africa, marking the end of 60 years of local Nissan manufacturing. [Business Day]
New digital identity: The South African Revenue Service’s (SARS’s) digital transformation roadmap for 2026 to 2030 will see each taxpayer assigned a digital identity and the eventual automation of VAT assessments. [Daily Investor]
Warning to taxpayers using WhatsApp: South Africans should be wary of fraudsters impersonating the South African Revenue Service (SARS) on WhatsApp. While some messages may be genuine due to SARS expanding its communication channels, it’s essential to remain cautious in identifying potential fraudsters. [MyBroadband]
85% increase in electricity since 2020: South Africans are still facing high prices for essential goods and services despite falling inflation. From July 2020 to January 2026, electricity costs rose 85%, and water tariffs increased 68%, both surpassing the overall inflation rate of 30%. [TimesLive]
New SARS Commissioner: President Cyril Ramaphosa has appointed Dr Ngobani Johnstone Makhubu as Commissioner of the South African Revenue Service (SARS) for a period of five years with effect from 1 May 2026. [BusinessTech]
