South African company being sued in Texas, and United States warns Ramaphosa is playing with fire
The South African rand strengthened against a softer US dollar on Thursday, as investors absorbed a US inflation report that largely met expectations while overlooking domestic producer inflation data that was higher than anticipated.
The rand traded at 16.45 against the dollar, rising approximately 0.7% from its previous close. The US dollar weakened by about 0.3% against a basket of currencies.
This follows the release of the US Personal Consumption Expenditures (PCE) price index, which alleviated some concerns about potential Federal Reserve interest rate hikes.
On Thursday, data showed that South Africa’s producer inflation accelerated to 7.8% year-on-year in May, up from 4.8% in April, exceeding economists’ expectations of 6.7%, according to Reuters.
Nedbank economists noted that the increase was primarily driven by higher fuel costs, as the blockage of the Strait of Hormuz kept oil prices elevated, impacting diesel and petrol prices.
On the Johannesburg Stock Exchange, the Top-40 index closed up more than 1%. Additionally, South Africa’s benchmark 2035 government bond strengthened as its yield fell by 7.5 basis points to 8.21%.
On Friday, 26 June 2026, the rand was trading at R16.53 to the dollar, R21.81 to the pound, and R18.80 to the euro. Gold is trading lower at $4,009.90 an ounce, while oil prices were at $73.75 a barrel.
5 important things happening
South African company being sued in Texas: Vodacom-owned IoT.nxt’s U.S. subsidiary is being sued in the Eastern District of Texas for allegedly failing to honour the compensation agreements of two executives headhunted by the company. [MyBroadband]
Ramaphosa is playing with fire: Cyril Ramaphosa’s government is playing with fire by disregarding the US conditions for normalising relations. In March 2026, US Ambassador to South Africa Leo Brent Bozell III stressed the need for compliance, stating that the US aims to boost investment in South Africa. He expressed concern over South Africa’s growing ties with countries like Iran and China, stating that the government cannot claim non-alignment while engaging with America’s adversaries. [Newsday]
Severe weather conditions confirmed for South Africa: South Africa is likely to face significant weather-related risks over the coming months after major international climate agencies confirmed that an El Niño weather phenomenon has developed. [BusinessTech]
Social media will be monitored on 30 June: South African police have noted that authorities will closely monitor social media platforms for threats, hate speech, and any attempts to incite violence during next week’s anti-illegal immigration demonstrations. [EWN]
Pesticide warning: The African Centre for Biodiversity (ACB) found pesticide residues in 86% of sampled commonly consumed foods, including staples like maize meal, bread, and flour, as well as breakfast cereals, fresh produce, and foods for infants and young children. [Mail & Guardian]
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