South Africa hits two countries with tariffs of its own, and motorists warned not to panic
The rand remained stable in early trading on Thursday as investors assessed the US Federal Reserve’s stance, which tempered expectations for near-term interest rate cuts.
Additionally, the ongoing conflict in the Middle East is keeping risk sentiment fragile.
The rand was trading at 17.01 against the dollar, showing little change from its previous close of 16.9975.
On Wednesday, the Fed adopted a hawkish tone due to soaring energy prices linked to the conflict in Iran, complicating the inflation outlook.
Although the central bank decided to keep interest rates unchanged, it warned that rising energy costs could lead to a more persistent surge in inflation.
Like other risk-sensitive currencies, the rand is affected by global factors as well as domestic economic data.
Analysts noted that the rand fell by approximately 1.8% yesterday, attributed to a stronger dollar and concerns over increasing energy prices, before closing at R16.98.
This morning, the local currency was trading steady against the dollar.
Economists also expect that South Africa’s central bank will hold its main interest rate steady during its upcoming policy announcement on March 26.
Analysts believe that monetary policy will likely remain tight for an extended period, delaying any potential rate cuts unless energy prices decrease significantly.
In early trading, South Africa’s benchmark 2035 government bond remained flat, with a yield of 9.1%.
The rand is currently trading around R16.79 to the dollar, closing higher after a gruelling week. The rand is at R22.50 to the pound and R19.39 to the euro.
In commodities, oil prices are still above $100 a barrel, currently at $106.8, while gold is $4,693.05 per ounce.
5 important things happening in South Africa today
South Africa imposes tax on Chinese steel imports: South Africa has introduced an anti-dumping tariff on structural steel imports from China and Thailand to protect its struggling local industry. This decision follows a 19-fold increase in imports during the 2023/24 financial year, which has significantly impacted companies such as ArcelorMittal South Africa (Amsa). [BusinessDay]
Motorists warned against fuel panic buying: The Fuels Industry Association has advised motorists not to purchase more fuel than necessary at gas stations. The organisation stated that changes in consumer behaviour can have a detrimental effect on fuel stability. Amid concerns about potential fuel shortages linked to the ongoing conflict in the Middle East, Avhapfani Tshifularo from the Fuel Industry Association of South Africa emphasised the need to address this crisis collectively. [ENCA]
Warning to Instagram users in South Africa: Meta Platforms, the social media giant, has announced that it will remove end-to-end encryption (E2EE) for direct messages (DMs) on its Instagram app, raising concerns that WhatsApp may be next. Starting on May 8, 2026, Instagram messaging will no longer support E2EE for secret conversations, which users had to opt into manually. Users who have used E2EE on Instagram will be prompted to save any chats or media shared in those conversations, as they will essentially disappear from the app after the specified date. However, the majority of Instagram users who communicate through standard, non-encrypted DMs will not be affected by this change.[MyBroadband]
Bad news for gold and platinum prices: Gold prices fell nearly 5% on Thursday evening, to about $4,600 an ounce. Meanwhile, Brent crude oil surged to nearly $120 a barrel before retreating to $114, following reports of attacks on oil infrastructure amid the ongoing conflict in the Middle East. The JSE closed down by 2.7%, having recovered some losses after initially plunging as much as 4.3% during early afternoon trading. [Moneyweb]
Cape Town’s cattle under increased scrutiny: Authorities are closely monitoring livestock movements in and around the city of Cape Town as they work to control the spread of foot-and-mouth disease (FMD). Law enforcement agencies of the City of Cape Town, including metro police and traffic services, are stationed at FMD checkpoints in Wits and Klipheuwel. The City of Cape Town, including metro police and traffic services, is stationed at FMD checkpoints in Wits and Klipheuwel. [EWN]
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