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South Africans have had a difficult start to 2026, dealing with one of the world’s most volatile currencies, high petrol prices, and a rising cost of living.
The rand and local markets are trading weaker at the start of the new week, weighed by the protracted Iran War and forecasts of higher inflation.
Traders are generally more positive about the rand due to the outlook for monetary policy tightening.
The South African rand has come under pressure in the new week as markets digest the latest signals from the United States Federal Reserve, and the Iran War continues to bite.
After being flooded with positive sentiment at the start of the year, the rand is back in the basket of worst-performing currencies thanks to the war in the Middle East.
Oil prices have dropped and the rand has strengthened on news that Iran would open the Strait of Hormuz for the time being, increasing the prospect of a wider peace deal for the region.
The rand is under pressure as markets pause ahead of a critical deadline for the US-Iran war.
The rand suffered another blow on Friday, weakening to R17.20 to the dollar during mid-afternoon trade.
The rand is taking a beating as markets stick to a risk-off stance, worried about prolonged conflict in the Middle East and the resulting disruptions to global oil supplies.