25 US states come to South Africa’s rescue, and Eskom goes from zero to hero
The rand strengthened slightly on Tuesday, helped by a drop in oil prices, as markets await U.S. labour market data.
The rand was trading at 16.39 to the dollar, roughly 0.9% up from its last close.
This was helped by the US dollar trading weaker against a host of currencies, while oil prices dropped by roughly 5%.
This came after comments from both Qatar and the US Treasury that reassured people that a diplomatic solution could be reached in the Middle East.
U.S. Treasury Secretary Scott Bessent said a reopening of the Strait of Hormuz could come as early as Tuesday or Wednesday.
Without major domestic data, the rand, like most other emerging market currencies, takes direction from global factors, such as geopolitical factors.
Markets are now awaiting a host of US job reports this week, which will give an indication of the Federal Reserve’s monetary policy going forward.
South Africa’s benchmark 2035 government bond strengthened, as the yield fell by 12 basis points to 8.36%.
On Wednesday, 05 August, 2026, the rand was trading at R16.36 to the dollar, R22.01 to the pound, and R18.87 to the euro. Gold is trading at $4,136.66 an ounce, while oil prices were at $78.87 a barrel. [Reuters]
5 important things
Stroke of luck for South Africa: While South Africa has requested an exemption from new US tariffs, following investigations into forced labour, 25 states have sued the Trump administration over unlawful Section 301 tariffs on 60 countries. [DailyInvestor]
Eskom goes from zero under André de Ruyter to hero under Dan Marokane: Since De Ruyter’s departure from Eskom, the utility service has seen increasing performance and efficiency. [MyBroadband]
Bad news for braai lovers in South Africa: Although food inflation continues to slow, the latest Braai Index indicates that prices are still rising due to sustained pressure from higher energy costs. [BusinessTech]
MPs slam McKenzie’s failure to account for R31 million spent on World Cup trip: McKenzie has failed to present a breakdown of costs for South Africa’s World Cup delegation, sparking outrage from parliament. [EWN]
Schools in Gauteng face safety crackdown: Gauteng’s education department has said that it will continue its crackdown on violence in 245 identified high-risk schools. [ENCA]
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