JOHANNESBURG — The South African rand (ZAR) held firm at approximately 17.37 per U.S. dollar by 07:30 GMT on Friday, little changed from its previous close of 17.3750.
Analysts at ETM Analytics noted that the currency’s defensive posture reflects growing unease among investors over major global equities showing signs of correction after months of gains.
While the rand’s movement appears muted, the broader South African financial market displayed some tension. The Johannesburg Stock Exchange’s Top‑40 index fell about 1% in early trade, and the yield on South Africa’s 2035 government bond edged up by one basis point to 8.775%.
Domestically, market participants are turning their attention to key data releases scheduled next week, including employment, mining, and manufacturing figures, as well as the unveiling of the government’s 2025 medium‑term budget statement.
Economists at Nedbank project a slight improvement in the country’s fiscal position, forecasting the consolidated budget deficit will narrow to 4.4% of GDP in the current fiscal year from 4.8%. They anticipate the deficit will gradually shrink but will still remain above 3% through the 2028/29 fiscal year. Their outlook sees a primary surplus of around 2% of GDP by the end of the forecast period.
For now, the rand appears anchored as global risk sentiment wavers. The potential for global market turbulence, combined with domestic fiscal developments, means South Africa’s currency and markets will likely remain sensitive in the short term.