Checkers ad ruled misleading, and major law firm sends a warning to South Africa
The rand was flat on Tuesday as market participants monitored the intensifying conflict in the Middle East and awaited the US Federal Reserve’s upcoming policy decision.
The rand was trading at 16.66 against the dollar, showing little movement from its previous close.
Israel’s Defence Minister, Israel Katz, announced on Tuesday that the Israeli military had killed Iran’s security chief, while Tehran continued its attacks against Gulf neighbours.
International oil prices rose by more than 2% for the day. Analysts anticipate ongoing pressure on the rand, which fell over 2% last week, extending losses of nearly 4% the week before.
This decline raises concerns that increasing oil prices will contribute to rising inflation in South Africa, a net energy importer.
The dollar declined by 0.2% against a basket of currencies as investors awaited the Federal Reserve’s two-day policy meeting, which begins later on Tuesday.
The Fed is widely expected to maintain interest rates for the second consecutive meeting when it announces its policy decision on Wednesday.
Like other risk-sensitive currencies, the rand often responds to global factors, such as US monetary policy, in addition to domestic economic data.
Locally focused investors will also be watching for February inflation figures and January retail sales numbers, both expected on Wednesday.
On the Johannesburg Stock Exchange, the Top-40 index was last up by 0.6%.
The rand is currently trading around R16.63 to the dollar, closing higher after a gruelling week. The rand is at R22.24 to the pound and R19.20 to the euro.
In commodities, oil prices are still above $100 a barrel, currently at $101.0, while gold is $4,998.15 per ounce.
5 important things happening in South Africa today
Checkers ad ruled misleading: The Advertising Regulatory Board (ARB) has ruled that a TikTok advertisement for Checkers Sixty60, Shoprite Checkers’ grocery delivery service, is misleading. [News24]
Webber Wentzel’s warning to South Africans: Law firm Webber Wentzel has warned that South Africa is not immune to conflict-related cyber risks, with major state-owned enterprises such as Eskom and Transnet vulnerable to cyberattacks. This is true for the country’s financial services sector, ports, energy infrastructure, and telecommunications networks, which are all potential targets or collateral victims of state-sponsored cyber activity. [DailyInvestor]
KZN government calls for reinstatement of Mkhwanazi: KwaZulu-Natal (KZN) provincial government is urging National Police Commissioner Fannie Masemola to quickly reinstate Nhlanhla Mkhwanazi as the province’s top police official, as his term ends in March. [EWN]
Four major banks say goodbye to Showmax vouchers: Four major banks in South Africa—Capitec, Discovery Bank, FNB, and Absa—are discontinuing vouchers for Showmax due to the service’s upcoming shutdown. For several years, many of the country’s large banks have provided prepaid Showmax vouchers through their mobile apps. Purchasing access to the service through these banks often comes with additional benefits, such as discounts or points earned in the banks’ respective rewards programs. Additionally, some banks permitted customers to buy Showmax vouchers using their rewards points instead of drawing from their bank accounts. [MyBroadband]
Mr Price execs defend European acquisition: Mr Price executives, including Chairman Nigel Payne and CEO Mark Blair, are enthusiastic about their R9.6 billion investment in Europe through the acquisition of German retailer NKD, which will give them access to the European clothing and homeware market. [BusinessDay]
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