The rand remained stable in early trading on Tuesday as fresh US and Iranian strikes in the Gulf tested a fragile truce, affecting risk appetite.
The rand was trading at 16.80 against the dollar, lingering near its weakest level since April 29.
On Monday, the US and Iran launched new attacks in the Gulf as they vied for control over the Strait of Hormuz, leading to competing maritime blockades.
As a result, oil prices dropped by 1% on Tuesday after rising as much as 6% in the previous session.
South Africa, being a net importer of petroleum products, is significantly affected by fluctuations in global energy prices.
Last week, Africa’s largest economy extended fuel tax cuts for May and June to mitigate the impact of the war on households.
In early trading, South Africa’s benchmark 2035 government bond showed weakness, with yields rising 11.5 basis points to 8.895%.
On Wednesday, 6 May, the rand was trading at R16.53 to the dollar, R22.45 to the pound, and R19.39 to the euro. Gold is trading lower at $4,649.12 an ounce, while oil prices were at $107.90 a barrel.
5 important things happening in South Africa today
Important businesses are exiting South Africa: Business Leadership South Africa (BLSA) has raised concerns regarding proposed changes to black empowerment rules and increasing regulatory complexity. BLSA CEO Busisiwe Mavuso said Nissan’s exit, with the Egypt expansion, shows that South Africa is at risk of losing ground in comparative ease of doing business for manufacturing. [Business Day]
Good news for diesel users in South Africa: The official diesel price increase announced earlier this week was incorrect, and motorists can expect a lower fuel price adjustment tomorrow. The Department of Mineral and Petroleum Resources (DMPR) has corrected an error in its fuel price calculation for May 2026, showing that consumers will pay almost R1 less than previously anticipated. [TopAuto]
Digital IDs are coming: The Department of Home Affairs published draft amendments to South Africa’s identification regulations on Monday, outlining the issuance of digital identity credentials to South Africans. [MyBroadband]
FlySafair R12 ticket sale: FlySafair has announced that it will bring back its birthday sale in 2026, with tickets selling for just R12 on Wednesday (6 May 2026). [BusinessTech]
German giant wants to buy 134-year-old South African company: Heidelberg Materials is in talks with banks to appoint financial advisers as it considers a bid for PPC, the 134-year-old South African cement maker, according to people familiar with the matter. [Daily Investor]
