The rand appreciated in early trading on Thursday, supported by a weaker US dollar and growing investor optimism that the ongoing conflict in the Middle East may be coming to an end.
The rand was trading at 16.3350 against the dollar, which is about 0.3% higher than its previous closing value.
The US dollar declined against a basket of currencies, reaching its lowest level in six weeks. This depreciation made dollar-denominated commodities more affordable for holders of other currencies.
Gold, a major export for South Africa, increased in value due to hopes of an end to the conflict.
Pakistan’s mediation efforts in Tehran and signals from the Trump administration have raised expectations for a deal to reopen the Strait of Hormuz.
However, the Minerals Council of South Africa cautioned on Wednesday that the conflict in the Middle East would significantly affect the mining industry’s profitability this year.
The council noted that miners’ average monthly fuel costs, typically around R2.9 billion, are expected to rise to approximately R4.3 billion in April.
It may remain high as long as disruptions in the Strait of Hormuz persist.
As of Friday, 17 April, the rand is trading at R16.42 to the dollar, R22.20 to the pound, and R19.35 to the euro. Gold is currently valued at $4,796.2 per ounce, while oil is trading at $98.16 per barrel.
5 important things happening in South Africa today
Elon Musk advocates sanctions against South Africa: Elon Musk criticised South Africa’s Black Economic Empowerment (BEE) laws, particularly regarding his Starlink satellite service, stating that if the country doesn’t change its “Apartheid 2.0” laws, it should be sanctioned. [MyBroadband]
Goodbye spam calls: Parks Tau, the Minister of Trade, Industry, and Competition, has revised the Consumer Protection Act to protect consumers from telemarketer spam calls. [BusinessDay]
Dawie Roodt’s warning to South Africa: Efficient Group chief economist Dawie Roodt warned that the shocks to South Africa’s economy from the US-Iran war could take up to two years to work through the system as elevated oil prices push inflation higher and instability reigns. [DailyInvestor]
New laws proposed for Cape Town rentals: The City of Cape Town has proposed amendments to its short-term letting by-law and is seeking public comment. The draft introduces new mechanisms for the municipality to obtain letting information from online rental platforms. [EWN]
Popular sugar brand in hot water: After 134 years, Tongaat Hulett is nearing liquidation. In court proceedings, it was stated that a R200-million funding injection might not suffice to address the issues. [TimesLive]
