The rand was trading at R16.19 to the US dollar on Wednesday morning, 2 September 2026, as local and global markets came under pressure from weaker economic data and rising interest-rate expectations.
The JSE All Share Index fell 0.35%, while the Top 40 Index declined 0.37%.
South African Manufacturing Slows
Investor confidence was hit by the latest ABSA Manufacturing PMI, which dropped to 45.8 in August from 46.8 in July.
The reading is the lowest recorded so far in 2026 and marks the fourth straight month below 50, signalling continued contraction in the manufacturing sector.
The rand was also trading at R18.73 against the euro and R21.84 against the British pound.
Global Markets Under Pressure
US markets also ended lower, with the S&P 500 falling 0.71%, the Dow Jones down 0.73% and the Nasdaq losing 1.03%.
Meanwhile, expectations of a 25-basis-point Federal Reserve rate hike climbed sharply to 68.2%, compared with 39.2% a week earlier.
European inflation also increased to 3.3% in August from 2.9% in July, adding to expectations of tighter monetary policy from the European Central Bank.
Asian markets followed the negative trend, with Hong Kong’s Hang Seng falling 0.93% and Japan’s Nikkei 225 slipping 0.15%.
Oil Surges Above $95
Oil prices jumped, with Brent crude moving above $95 a barrel amid renewed tensions involving the US and Iran.
Concerns around potential restrictions on shipping through the Strait of Hormuz added to market uncertainty, while US crude inventories fell by 2.6 million barrels.
Gold moved in the opposite direction, dropping to a three-week low of $4,302.68.
Key Business Stories to Watch
Volkswagen restructures: Volkswagen CEO Oliver Blume is reportedly looking to streamline the German automaker and give it a more global footprint as competition from Chinese manufacturers intensifies.
Sibanye-Stillwater boosts earnings: The mining group more than doubled adjusted EBITDA to R31.8 billion in the first half of 2026, helped by stronger gold and platinum prices. Its board has also approved new gold projects in Gauteng and Australia.
Dell rides the AI boom: Dell Technologies shares jumped more than 10% in after-hours trading after the company lifted its outlook. The technology group reported a record $60.9 billion in AI server orders.
Japan weighs another rate hike: The Bank of Japan is considering raising interest rates this month as inflation risks continue to build.
eThekwini’s R47 billion debt problem: The Durban municipality is facing more than R47 billion in outstanding debt, with households accounting for R35 billion, businesses R10 billion and government departments R2 billion.
Main Image: IOL
