The South African rand was little moved by the start of Sunday morning, with the world still waiting on the latest developments from the US-Iran war.
Although Lebanon and Israel extended their ceasefire for three weeks ahead of its expiration today, 26 April, Iran further showed its control of the Strait of Hormuz after commandos stormed a huge cargo ship last week.
South Africa is a net importer of energy, leaving it highly exposed to swings in global prices, while greater risk-off sentiment hurts the rand.
Talks between the US and Iran, however, have been dealt a blow. US President Donald Trump has cancelled his envoys’ visit to Pakistan for negotiations.
The US president said that Iran did not make a satisfactory offer for a peace deal, while Iran’s Foreign Minister Abbas Araghchi had already departed from Pakistan, raising fears over an extended conflict.
Back home, domestic investors’ focus next week will be on South Africa’s business cycle leading indicator, producer inflation numbers, money supply and private sector credit data, trade balance and budget balance figures.
As of Sunday, 26 April, the rand is trading at R16.52 to the dollar, R22.36 to the pound, and R19.37 to the euro. Gold is currently valued at $4,709.27 per ounce, while oil prices have risen to $105.33 per barrel. [Reuters, Al Jazeera]
5 Important things happening in South Africa today
Minister slammed for AI policy: Communications minister Solly Malatsi was criticised on Saturday after it emerged that AI was likely used to help draft South Africa’s National Artificial Intelligence (AI) Policy, with several academic sources and journals cited that did not exist. [MyBroadband].
Deepfake warning: The South African Reserve Bank has warned South Africans about fake AI-generated images purporting to show its governor, Lesetja Kganyago, fighting media personalities Tim Modise and Bruce Whitfield. In a similar but separate case, Biznews founder Alec Hogg was shown to be in confrontation with President Cyril Ramaphosa. [Daily Investor]
Department of Science deletes embarrassing tweet: The Department of Science, Innovation and Technology has deleted a tweet that claimed South Africa could use its platinum reserves, which account for 80% of the world’s supply, as a key ingredient in electric car batteries. However, standard EVs do not use platinum because they lack catalytic converters, which are used to limit emissions.[X]
Crypto is here to stay: South Africans increasingly see cryptocurrency as a long-term investment rather than a speculative punt. This is according to Discovery, as revealed in its SpendTrend26 report. Crypto is seen as a core asset alongside stocks and property, Discovery said. [MyBroadband]
H&M looks to launch a loyalty programme: Swedish fashion retailer H&M may introduce its global loyalty programme to South Africa, with loyalty programmes a huge influence on how South Africans shop. The company said it will launch the programme when it finds the best fit for the local market. [Business Day]
