South African rand edges up as investors watch developments in the Middle East

Source: Reuters.

At 0722 GMT the rand traded at 16.4950 against the dollar, about 0.2% up from its previous close.

On Tuesday, 3 March 2026 South Africa's stocks, government bonds and rand currency extended losses as part of the global selloff amid escalating US and Israeli strikes on Iran.

"Emerging market currencies have come under pressure as investors pull money out of riskier markets and shift toward the dollar. The rand has been among the weaker performers, briefly pushing USD/ZAR to its highest level in almost three months before stabilising somewhat," said Andre Cilliers, currency strategist at TreasuryOne.

Like other risk-sensitive currencies, the rand often takes cues from global drivers such as US policy in addition to local factors.

Domestic traders will also look to the S&P Global February whole-economy PMI for clues on business conditions in the country.

On the Johannesburg Stock Exchange, the Top-40 index was last up 0.5% in early trade.

South Africa's benchmark 2035 government bond was also steady in early deals, as the yield fell 3 basis points to 8.295%.