The South African rand weakened on Tuesday, pressured by a stronger US dollar and rising oil prices due to supply disruptions in the Middle East.
Investors are awaiting the release of central bank data later this week. The rand traded at 16.5775 against the dollar, down about 0.2% from its previous close.
The currency has been under pressure amid persistent inflation concerns driven by high oil prices.
The dollar strengthened against a basket of currencies, while oil prices surged by more than 3% to more than $111 a barrel, largely due to the ongoing closure of the Strait of Hormuz.
As South Africa is a net importer of energy, it is particularly vulnerable to fluctuations in global oil prices.
Earlier on Tuesday, central bank data revealed that South Africa’s composite leading business cycle indicator rose by 0.5% month-on-month in February.
Later in the week, domestic investors will focus on South Africa’s producer inflation figures, money supply, private-sector credit data, trade balance, and budget balance figures.
These indicators could provide insights into the health of Africa’s most industrialised economy. On the Johannesburg Stock Exchange, the Top-40 index dropped by 1.3%.
As of Wednesday, 29 April, the rand is trading at R16.56 to the dollar, R22.37 to the pound, and R19.38 to the euro. Gold is currently valued at $4,602.65 per ounce, while oil prices are at $111.30 per barrel.
5 important things happening in South Africa today
Coca-Cola in hot water: Coca-Cola South Africa has withdrawn a job advertisement following legal action initiated by Solidarity. The advertisement was for an intern position that stipulated that only “employment equity” candidates could apply. [Solidarity]
R17.2 billion ‘gift’: National Treasury and the Department of Mineral and Petroleum Resources have announced that the fuel tax relief will be extended, with additional relief for diesel. The estimated cost of the temporary fuel levy relief from April to June 2026 is R17.2 billion in foregone tax revenue. [BusinessTech]
New threat to fast food in South Africa: Spending data shows that individuals on weight-management medicines, such as Ozempic and Mounjaro, spend substantially less on takeaways. [Daily Investor]
Top South African editor under fire: Sunday Times Editor, Makhudu Sefara, has been implicated in an alleged irregularity uncovered by the Special Investigating Unit (SIU). [MyBroadband]
Steenhuisen court battle continues: The Pretoria High Court has set new deadlines for Agriculture Minister John Steenhuisen and issued a punitive costs order regarding the government’s handling of the FMD vaccinations. [Business Day]
