National shutdown warning for South Africa, and another important town collapsing
The South African rand weakened on Friday, pressured by a firmer dollar and hawkish signals from the US Federal Reserve that dampened appetite for riskier assets.
The rand traded at R16.50 against the dollar, about 0.3% down from its previous close during the day, but closed at a stronger position, around R16.37/$.
The currency came under pressure as investors reassessed expectations for US interest rates, with Fed officials signalling that borrowing costs may need to remain elevated for longer to curb inflation.
The greenback strengthened against a basket of currencies, rising to a one-year high.
Analysts have said that the USD’s advance reflects a sharp repricing of US rate risk rather than safe-haven demand.
“Upside surprises in payrolls and persistently low layoffs reinforced the view that the US economy can tolerate tighter policy, while cheaper Brent crude failed to offset higher short-term US yields,” said ETM Analytics in a note.
“For South Africans, this keeps USD liquidity expensive and caps ZAR rallies.”
Nevertheless, the rand still remains in a resilient position given the market turmoil arising from the US-Iran war.
Market sentiment turned positive this week on news that the US and Iran had struck a deal, but remained cautious as both sides had previously struggled to keep to the ceasefire terms.
This was again proven to be the case after Iran delayed the start of negotiations over a permanent peace deal with the US after fighting intensified in southern Lebanon.
Iran insisted on a ceasefire in Lebanon as part of the interim peace deal finalised with the US this week, and didn’t send a delegation to the talks as a result of the fresh hostilities.
US Vice President JD Vance, who was to represent Washington, also didn’t travel. There’s as yet no indication of a new start date for the discussions.
Despite the setback, markets appear to be pricing in a longer-term deal being in place, with the oil price at around $80 a barrel.
5 important things happening in South Africa today
National shutdown: There are growing concerns that rising anti-immigrant sentiment could boil over into widespread civil unrest similar to the July 2021 Riots, with economists and analysts looking to the looming national shutdown planned on 30 June 2026 as a trigger point. [Daily Investor]
Another town collapsing: The City of Matlosana, formerly the City Council of Klerksdorp, is in serious financial trouble, owing billions to Eskom and Midvaal Water. The city held a special council meeting on 12 June 2026, which revealed serious financial and governance failures, including R22 billion in debts and liabilities. [Newsday]
Petrol tax cut: Civil action organisation AfriForum has written to finance minister Enoch Godongwana, requesting that he make the temporary cut in fuel levies permanent. The group argued that the temporary relief did not go far enough or last long enough to spare motorists and businesses from economic hardship. [MyBroadband]
Reserve Bank looking out: The South African Reserve Bank says that an end to the war between the US and Iran would be good news and make life a lot easier for the MPC to determine the future interest rate path, but stressed that it all depends on the stickiness of inflation, which is being pushed higher by more than just the war. [BusinessTech]
Voter registration: The IEC is urging all eligible voters to register this weekend, as approximately 10 million eligible voters remain unregistered. More than 23,000 voting stations will be open this weekend to facilitate registration, all in preparation for the local government elections to be held in November. Details on how to register can be found here: [IEC]
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