The rand fell by more than 1% after US President Donald Trump announced plans for more aggressive strikes on Iran.
This unsettled investors who had hoped for a swift resolution to the conflict. The rand was quoted at 17.0250 against the dollar, which is 1.3% weaker than its previous close.
In a prime-time address to the nation last week, Trump stated that the United States would undertake aggressive operations against Iran.
He noted that this would take place over the next two to three weeks, but was nearing the “completion of its main strategic objectives” in the conflict.
This announcement resulted in an increase in the value of the US dollar and a rise in oil prices.
This diminished demand for emerging-market currencies and heightened inflation concerns among net energy importers like South Africa.
Since the onset of the war initiated by the US and Israel at the end of February, the rand has been heavily influenced by global market sentiment, particularly following Iran’s response.
Analysts note that the local currency performed strongly in 2025 and began 2026 on a positive note, making it susceptible to a correction.
South Africa’s benchmark 2035 government bond remained unchanged in early transactions, with the yield at 8.885%.
As of Sunday, 5 April, the rand is trading at R16.97 to the dollar, R22.43 to the pound, and R19.56 to the euro. Gold is currently valued at $4,676.40 per ounce, while oil prices have risen to $109 per barrel.
5 important things happening in South Africa today
Calls for changes in the diesel price: The director-general in the Department of Mineral and Petroleum Resources has said South Africa must consider reviewing its fuel pricing laws that allow diesel sellers to set their own retail prices, due to what he called unethical pricing and allegations of filling stations holding back fuel to sell at a higher margin. [MyBroadband]
Japanese companies want to invest in SA: Japanese companies have invested in a $147 million Africa-focused venture capital fund, in a sign of growing interest from the Asian nation in the continent’s startups. The Japanese investors “want access to knowledge and deal flow on the continent.” The latest fund, Novastar, is looking for deals in South Africa. [Bloomberg]
Airport named the best in Africa: The Cape Town International Airport (CTIA) has been named the best airport in Africa for an eleventh consecutive year. [TopAuto]
R2 billion resort in South Africa set to open its doors: On 4 July 2026, the R2 billion Club Med Tinley resort is set to open on KZN’s North Coast, which property experts say will change the region forever. [Daily Investor]
Good news for prepaid electricity users with solar: Eskom will soon allow rooftop solar power users on its distribution network to register their systems without migrating to a postpaid tariff. The power utility announced it was testing this system and intended to proceed to immediate rollout once initial implementation requirements were confirmed. [MyBroadband]
