The rand strengthened in early trading on Tuesday, benefiting from higher gold prices as investors awaited clarity regarding the status of US-Iran peace talks amid conflicting reports.
The rand traded at 16.2150 against the dollar, about 0.6% stronger than its previous close.
Gold and platinum prices, which are significant exports for South Africa, rose on Tuesday, primarily due to lower Treasury yields.
The US dollar remained relatively stable against a basket of currencies as investors remained cautious, treating any news of progress in resolving the Iran conflict with scepticism.
This caution stems from the fragile ceasefire established between the US and Iran in early April.
Analysts noted that the rand is likely to remain highly sensitive to shifts in global risk appetite and developments in energy markets.
On the Johannesburg Stock Exchange, the Top-40 index rose by 2.3%, driven by strong performance in mining stocks.
On Wednesday, 3 June, the rand was trading at R16.27 to the dollar, R21.90 to the pound, and R18.91 to the euro. Gold is trading lower at $4,471.31 an ounce, while oil prices were at $97.08 a barrel.
5 important things happening in South Africa today
Steenhuisen’s missing R500 million handed to the SIU: Minister of Agriculture, John Steenhuisen, said that his investigation into a questionable R500 million Onderstepoort Biological Products project is now with the Special Investigating Unit (SIU). Shortly after taking office in August 2024, he flagged that a significant portion of the funds was unaccounted for. Steenhuisen said that a forensic audit was needed to find where the money went. [Newsday]
Private Afrikaans university coming to the Western Cape: In an update on the building progress of Solidarity’s R3.2-billion Akademia private university campus in Pretoria East, Akademia also announced it secured land for a second comprehensive campus to be built in the Western Cape. [MyBroadband]
Highest petrol price in history in effect: The Department of Mineral and Petroleum Resources has published the official fuel price adjustments for June. It confirmed that inland 95 unleaded petrol will increase by R1.43 per litre to a record R28.06 per litre. Inland diesel 0.005% wholesale fell to R29.26 per litre. [BusinessTech]
Godongwana says no more state banks: Finance Minister Enoch Godongwana said the government has no intention of establishing another new state-owned commercial bank. He said it’s not feasible given SA’s fiscal constraints, and the country already has a number of state banks. [Business Day]
Bank of America shares good news about South Africa: Bank of America expects strong deal-making activity in South Africa to continue this year despite ongoing global volatility, the head of its local operation said. [Daily Investor]
