The rand has strengthened slightly as the dollar has remained weak, amid optimism over a potential US-Iran peace deal that could alleviate concerns about rising inflation and high interest rates.
The rand was trading at 16.34 against the dollar on Friday, representing a 0.4% increase compared to Thursday’s close.
The currency benefited from a softer dollar, which was hovering near multi-week lows. Gold prices held steady on Friday and were on track for a fourth consecutive weekly gain.
However, market participants remained cautious as they evaluated whether the progress in US-Iran negotiations would be sustained, given its implications for oil prices, inflation, and global risk appetite.
Oil prices fell sharply on Friday after Iranian Foreign Minister Seyed Abbas Araghchi declared that the Strait of Hormuz was “completely open” during the ceasefire between Israel and Lebanon, raising hopes of easing supply disruptions.
Araghchi’s comments on social media followed statements by US President Donald Trump, who said late Thursday that the war in Iran, which began on February 28, “should be ending pretty soon.”
US crude oil futures for May delivery dropped 10.6% to $84.63 per barrel, while the international benchmark Brent for June delivery declined by 9.9% to $89.50 per barrel.
On the Johannesburg Stock Exchange, the Top-40 index rose by 0.5%. South Africa’s benchmark 2035 government bond also improved, with the yield decreasing by 5 basis points to 8.42%.
As of Monday, 20 April, the rand is trading at R16.42 to the dollar, R22.14 to the pound, and R19.29 to the euro. Gold is currently valued at $4,781.02 per ounce, while oil prices have risen to $95.42 per barrel.
5 important things happening in South Africa today
New rules for BEE: Companies seeking to engage in business with the government must show that at least 40% of their previous procurement was spent on enterprises that are predominantly black-owned and managed in order to qualify for state tenders. [BusinessDay]
Eskom accused of bullying: Independent power producers (IPPs) have accused Eskom of bullying amid tensions over grid connections. This follows a high court ruling that found Eskom’s decision to withdraw a grid allocation from Mulilo Energy Holdings and grant it to competitor Scatec unlawful. [Moneyweb]
SAPS warning about leaking affidavits : The South African Police Service has expressed concern regarding the leak and publication of affidavits related to ongoing investigations into drug-related criminal networks. [SABC]
Taxpayer money sends finance minister’s wife abroad: Taxpayers spent R502,146 on flights for Finance Minister Enoch Godongwana’s wife to accompany him in attending World Economic Forum (WEF) meetings in Davos in 2025 and 2026. [DailyInvestor]
Vodacom sells over 51,000 phones: Vodacom has sold more than 51,000 refurbished smartphones through its Good As New programme, forming part of its wider push to reduce e-waste in South Africa. [MyBroadband]
