South Africa in hot water, and South Africans say goodbye to DStv
The rand strengthened in early trade on Thursday as investors considered the prospects of a U.S.-Iran peace deal.
This is despite the issue of ensuring shipments through the Strait of Hormuz remained unresolved. The rand was trading at 16.3225 against the dollar, up about 0.4% from its previous close.
The US dollar showed little change against a basket of currencies, while oil prices increased by over $1 on Thursday.
US President Donald Trump has consistently highlighted the possibility of an agreement to end the war that began on 28 February, but so far without success.
On Wednesday, Iran stated it was reviewing a US peace proposal, which sources indicated would formally end the war.
Still, it would leave unresolved US demands for Iran to suspend its nuclear program and reopen the Strait of Hormuz.
Like other risk-sensitive currencies, the rand often responds to global factors in addition to domestic economic data.
On Friday, South African investors will evaluate foreign reserves data for April, which will provide insights into the health of Africa’s most industrialised economy.
On the Johannesburg Stock Exchange, the Top-40 index was up about 0.5% in early trade.
On Friday, 8 May, the rand was trading at R16.44 to the dollar, R22.30 to the pound, and R19.29 to the euro. Gold is trading lower at $4,715.61 an ounce, while oil prices were at $101.30 a barrel.
5 important things happening in South Africa today
South Africa in hot water: Relations between South Africa and Ghana have strained after Ghana raised concerns about xenophobia and attacks on foreigners to the African Union (AU), leading to a defensive response from South Africa’s international relations minister, Ronald Lamola. [TimesLive]
South Africans say goodbye to DStv: MultiChoice’s revenue continues to plummet as South Africans cut the cord and move from DStv to competing streaming services like Netflix and YouTube. [MyBroadband]
Airlink looking for passengers over deadly virus: Airlink has initiated contact tracing and informed the public that a passenger on one of its flights had passed away from Hantavirus. Anyone who was on the flight is advised to contact the health department. [BusinessTech]
FlySafair expends fuel levy: South Africa’s largest airline, FlySafair, has extended its ticket surcharge due to rising fuel costs from the Middle East conflict. This surcharge will remain until August, pending a potential ceasefire agreement. [Moneyweb]
D-day for Ramaphosa: The Constitutional Court will deliver a judgment on Friday regarding the EFF’s application about parliament’s refusal to impeach President Ramaphosa over a robbery at his Phala Phala farm. [Business Day]
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