The rand began Tuesday’s trading session on a weak note and continued to decline after data showed an increase in South Africa’s unemployment rate in the first quarter of 2026.
The rand traded at 16.5175 against the dollar, approximately 0.5% below its previous close. According to data from the statistics agency released on Tuesday, South Africa’s unemployment rate rose to 32.7%, up from 31.4%.
This official jobless rate has remained above 30% for over five years, making it one of the highest in the world.
Economists noted in a research report that the increase in the unemployment rate was primarily driven by job losses and inadequate job creation, along with many potential workers giving up their job searches.
They further indicated that the ongoing US-Iran conflict has introduced additional challenges, which are likely to exert pressure on oil-intensive sectors due to rising input costs and potential supply disruptions.
Separate data from Statistics South Africa showed that manufacturing output increased by 0.9% year-on-year in March, surpassing analysts’ expectations of a 0.3% increase, according to a Reuters poll.
The US dollar strengthened by 0.4% against a basket of currencies after the Bureau of Labour Statistics reported a rise in US consumer prices for the second consecutive month in April.
On the Johannesburg Stock Exchange, the Top-40 index was down by 1.4%. South Africa’s benchmark 2035 government bond experienced a decline as the yield rose by 8.5 basis points to 8.78%.
On Wednesday, 13 May, the rand was trading at R16.50 to the dollar, R22.32 to the pound, and R19.36 to the euro. Gold is trading lower at $4,699.18 an ounce, while oil prices were at $106.40 a barrel.
5 important things happening in South Africa today
Calm before the storm: South Africa has yet to feel the full impact of the Middle East conflict, but it will likely be felt soon as the war continues. Businesses, unable to absorb rising costs, will pass these increases onto consumers in the form of higher prices. [Daily Investor]
Good news for Capitec customers: Capitec Connect customers received 3 petabytes of free data over the past year, valued at R78 million. Through the Live Better Rewards programme, customers who link their Capitec Connect SIMs to their banking profiles get 1GB of free data monthly and a 20% bonus on recharges. [MyBroadband]
Blow for domestic workers in South Africa: The latest employment data from Stats SA show that domestic worker jobs in the country have declined by 1.2% over the past quarter, resulting in the loss of 10,000 jobs. [BusinessTech]
Minister of Education in hot water: The Minister of Education is under scrutiny as Parliament’s committee requests a public protector investigation into new textbook suppliers for grades 1 to 3, which adds to the mounting pressure on Minister Siviwe Gwarube and Director-General Mathanzima Mweli. [Business Day]
Trouble for South Africa’s universities: South African universities face systemic governance issues, with corruption and weakened leadership threatening their integrity, according to a USAf report. [Mail & Guardian]
