The rand weakened slightly against the dollar on Thursday after data revealed that South Africa’s producer price inflation accelerated in October.
However, movements in the currency market were limited due to the US Thanksgiving holiday.
The rand was trading at 17.17 against the dollar, approximately 0.2% weaker than its previous close, while the US dollar remained relatively unchanged against a basket of other currencies.
According to data from the statistics agency, South Africa’s producer inflation increased to 2.9% year-on-year in October, up from 2.3% in September.
Additionally, producer inflation for meat and meat products rose from 17.2% to 17.4% in October, largely due to the ongoing impact of foot-and-mouth disease.
Investec economist Lara Hodes emphasised that foot-and-mouth disease continues to be a significant challenge despite ongoing vaccination efforts, putting additional pressure on farmers.
On the Johannesburg Stock Exchange, the Top 40 index was down 1.2% at the end of trading.
On Friday, 28 November, the rand was trading at R17.16 to the dollar, R22.72 to the pound and R19.89 to the euro. Oil was trading slightly lower at $63.60 a barrel.
5 important things happening in South Africa today
800,000 South African jobs ar risk: Trade union Solidarity warned that 800,000 jobs could be at risk if the government does not fulfil its commitments. Of these, 300,000 jobs may be affected from December to early 2026, particularly in South African smelters and heavy industries. An additional 500,000 jobs in steel and manufacturing are also at risk. [Daily Investor]
China throws a lifeline: The US noted that it intends to cut off all funding schemes and aid to South Africa, and retreat from almost eight decades of free trade. While this is still a concern, China has thrown a lifeline. Beijing has announced duty-free access for all African nations, positioning itself as the continent’s most welcoming major partner. For South Africa, this policy shift arrives at a crucial moment. [Business Day]
R100 million in taxpayer money down the drain: The Free State provincial government has poured more than R100 million to renovate the historic Old Ramkraal Prison Complex in Bloemfontein: yet the site remains abandoned and increasingly lawless. [Newsday]
The beginning of the end of Eskom’s monopoly: Nersa has announced historic steps to initiate a competitive electricity market. Nersa made three significant decisions on Thursday aimed at facilitating the transition to a competitive electricity market over the next five years. However, it did not provide crucial details that would ensure a level playing field for all participants. [News24]
New petrol tax proposed: Rob Handfield-Jones, managing director of Driving.co.za, argues that South Africa should replace the litre-based Road Accident Fund (RAF) Levy and General Fuel Levy (GFL) with a per-kilometre tax based on vehicle weight and distance. This change would create fairer fuel taxes and accommodate the rise of new energy vehicles (NEVs). [TopAuto]
