The rand strengthened on Thursday as markets reviewed a series of monthly domestic data to gauge the country’s economic health.
After dipping to over R16.80 following the US Federal Reserve’s rate announcement earlier in the week, the rand recovered to approximately R16.70.
This strengthening can also be attributed to a decline in the dollar, following signals from Japanese officials about potential intervention to support the yen, along with ongoing pressure on oil prices.
Oil prices briefly surged above $126 per barrel amid fears that the US-Iran conflict could escalate and disrupt Middle Eastern oil supplies, but they eventually retreated.
The price of oil has moved back to around $110 per barrel, although it remains elevated.
As South Africa is a net importer of energy, the country is particularly vulnerable to fluctuations in global oil prices.
In addition, South Africa’s producer price inflation (PPI) increased to 2.3% year-on-year in March, according to data from Stats SA released on Thursday.
Other economic indicators included a trade surplus of R31.87 billion for March, while National Treasury data revealed a budget deficit of R45.61 billion for the same month.
On Sunday, the rand was trading at R16.67 to the dollar, R22.60 to the pound, and R19.51 to the euro.
Gold is trading lower at $4,615.24 an ounce, while oil prices were at $108.2 a barrel.
5 important things happening in South Africa today
Warning to people using solar: Rodney Taylor, managing director of Guardian Eye, warned that organised crime syndicates are targeting valuable solar installations in South Africa due to their accessibility. [MyBroadband]
Good news for Uber and Bolt: South African spending on ride-hailing services like Uber and Bolt is growing faster than fuel expenses, indicating a renewed popularity. [DailyInvestor]
R1.7 billion recovered in NSFAS funding: The Special Investigating Unit (SIU) has recovered over R1.7 billion in misallocated student funding, leading to a comprehensive overhaul of NSFAS’s operations. [Citizen]
Some of Johannesburg still without power: Parts of the Johannesburg CBD are still without power after a fire at the central substation last week. City Power has faced delays due to ongoing theft, including the loss of 180 meters of vital protection cables. [EWN]
Disputes between Postbank and Sassa: The South African Social Security Agency (Sassa) and Postbank are currently in a dispute regarding the termination of a long-standing agreement that positioned Postbank as Sassa’s primary grant disburser. [BusinessDay]
