On Tuesday, the rand showed some strength but was still set to end the month over 6% weaker against the dollar due to a selloff triggered by the war in Iran.
The rand traded at 17.0050 against the dollar, approximately 1.2% stronger than its previous close.
This risk-sensitive currency received some support after the government announced a temporary reduction in the fuel levy for one month to prevent further increases in fuel prices, attempting to mitigate the impact of the ongoing conflict in Iran.
Since the war began in late February, initiated by the U.S. and Israel with Iran’s subsequent retaliation, the rand has been heavily influenced by global market sentiment.
The rand had a strong performance in 2025 and started 2026 positively, which made it susceptible to a correction.
Analysts suggest that the currency’s direction will continue to depend on developments in the Middle East, although local economic data may also impact its trajectory.
According to figures released on Tuesday, South Africa recorded a trade surplus of 36.92 billion rand ($2.17 billion) in February.
The central bank reported foreign direct investment inflows of 41.3 billion rand in the fourth quarter of 2025, compared to outflows of 21.0 billion rand in the third quarter.
On the Johannesburg Stock Exchange, the Top-40 index was last reported to be up by 1.9%.
Additionally, South Africa’s benchmark 2035 government bond strengthened, with the yield decreasing by 9 basis points to 9.18%.
As of Wednesday, 1 April, the rand is trading at R16.89 to the dollar, R22.38 to the pound, and R19.54 to the euro. Gold is currently valued at $4,683.53 per ounce, while oil prices have risen to $104.70 per barrel.
5 important things happening in South Africa today
Post Office plans to exit business rescue: Business rescue practitioners (BRPs) for the South African Post Office have outlined the steps necessary for the troubled state-owned entity to exit the financial distress process initiated in July 2023. They also explained their recent proposal for the entity’s liquidation. [MyBroadband]
Bad news for Eskom customers: Direct customers of Eskom will face higher electricity costs starting Wednesday. The utility has rolled out an 8.7% tariff increase for the 2026/27 financial year, which was approved earlier this month by the energy regulator, Nersa. [ENCA]
R600 million recovered in the water sector: The Special Investigating Unit (SIU) has recovered nearly R600 million in cash and assets that may have been lost to corruption and financial mismanagement in the water sector. [TimesLive]
25% duty tax on passenger vehicles and parts: Trade tariffs imposed by the US have significantly reduced South Africa’s export volumes, particularly passenger vehicles and parts, which are now subject to a 25% duty. [BusinessDay]
Rhodes Fruit brand delisted from JSE: South African food producer RFG Holdings has been delisted from the Johannesburg Stock Exchange (JSE) following its acquisition by Premier. The company first announced its intention to buy RFG in October 2025 and, on 31 March 2026, the deal was completed. [DailyInvestor]