The rand weakened in early trading on Thursday, slipping below 16.40 against the US dollar as high oil prices and risk aversion negatively impacted South Africa’s terms of trade, limiting any significant recovery.
The rand was trading at 16.4975 against the dollar, approximately 1% lower than its previous close.
Since the beginning of the week, the South African rand has lost around 4%, pushing the USD-ZAR pair significantly away from the 16-mark, which is currently trading around 16.5.
Analysts noted that the rand is back below 16.40, while elevated gold prices are helping it find some stability.
Unfortunately, high oil prices continue to pressure South Africa’s terms of trade, which will hinder the rand’s full recovery.
Commodity prices have been supportive, with key South African exports, particularly gold, rising in global markets due to increased demand for safe-haven assets.
The Johannesburg Stock Exchange’s Top-40 index was down 0.5% in early trading.
Additionally, South Africa’s benchmark 2035 government bond fell in early transactions, as the yield increased by 4 basis points to 8.265%.
As of Friday, 6 March, the rand is trading at R16.63 to the dollar, R22.21 to the pound, and R19.30 to the euro. Gold is currently valued at $5,112.91 per ounce, while oil prices have risen to $84.75 per barrel.
5 important things happening in South Africa today
New laws for VAT changes: The Western Cape High Court declared section 7(4) of the Value-Added Tax Act, which empowers Finance Minister Enoch Godongwana to amend the VAT rate, unconstitutional. The court suspended the order for 24 months to give Parliament time to make necessary corrections to the Act. [BusinessTech]
New crime taking hold in South Africa: Smile ID’s 2026 Digital Identity Fraud Report shows South Africa has the highest rate of deepfake-driven fraud in Africa at 22%. The research indicates that AI is increasingly fueling biometric fraud, with a significant rise in deepfake impersonation and spoofing, where fraudsters manipulate images and videos for biometric verification. [MyBroadband]
Eskom wants to go nuclear: Eskom plans to build 5,200MW of nuclear energy as outlined in the Integrated Resource Plan. The company is evaluating 13 coal power stations for conversion to provide 400MW using small modular reactors and aims to develop four large reactors at two sites to generate 4,800MW. [News24]
Billions down the drain: Canal+, the new owner of MultiChoice, announced on Thursday that Showmax would be phased out after a review of its streaming activities. This is notable but not surprising, given that Showmax reported R753 million in revenue and a trading loss of R4.947 billion in its last financial year. Overall, it has incurred trading losses of R8.8 billion since launching. [Moneyweb]
Deadline missed for driving licence extension: Following months of planning to extend South Africa’s driver’s licences to eight years, the Transport Department has missed a critical deadline in its implementation plans. According to its own Annual Performance Plan, the department was meant to submit its decision to parliament for endorsement by the fourth quarter of the 2025/26 financial year, which it did not. [TopAuto]
