South Africa could be paying an extra R93.5 billion every year for social grants, and SpaceX has its best day ever
The rand strengthened sharply against the dollar late on Friday, 7 August, after shock US jobs data weakened the greenback and boosted gold.
The rand reached around R16.15 to the dollar, moving closer to the R16/$ level it last crossed before the US-Iran war began in late February.
The US economy unexpectedly shed 23,000 jobs in July, compared with expectations for an increase of around 80,000 to 95,000 jobs.
Previous employment figures were also revised sharply lower, with June’s gain cut to 20,000 from 57,000 and May’s figure almost halved to 66,000 from 129,000.
The weak labour market data reduced expectations of further US interest rate hikes and increased the prospect of monetary easing, putting additional pressure on the dollar.
The Federal Reserve kept interest rates unchanged earlier in the week, while markets are now reassessing the likelihood of a September rate move.
The weaker dollar also provided a boost to gold, which climbed more than 2.5% on Friday to around $4,346 an ounce.
Gold has benefited from expectations of lower US interest rates, a weaker dollar and continued safe-haven demand amid geopolitical and fiscal uncertainty.
The dollar’s weakness comes as several factors undermine the conditions that previously supported its strength.
A divided Federal Reserve, softer US employment data, and the Trump administration’s approach to trade and currency policy are all contributing to the repricing.
The broader market continues to reassess the outlook for United States interest rates. However, geopolitical risks remain a counterforce.
Oil prices rebounded sharply on Friday as uncertainty over the Strait of Hormuz continued to unsettle energy markets.
Brent crude rose around 5.7% to $83.55 a barrel, while West Texas Intermediate gained about 4.7% to $78.18. Despite the rebound, Brent remained more than 8% lower for the week, while WTI was down more than 7%.
Markets are watching negotiations between Iran and Oman, which could determine whether commercial shipping through the Strait of Hormuz can return to normal.
Iran has reportedly reached a general framework with Oman, although the agreement still requires higher-level approval.
Any agreement that restores safe shipping could put further downward pressure on oil prices, while renewed restrictions or disruption could trigger another sharp rally.
Higher oil prices would complicate the inflation outlook and could make it harder for central banks to loosen monetary policy.
South African investors will also be watching local employment data next week. Stats SA is due to release the second-quarter Quarterly Labour Force Survey on Tuesday, 11 August.
South Africa’s unemployment rate rose to 32.7% in the first quarter of 2026 after 301,000 people lost their jobs.
The local labour market remains weak, but a softer US economy could provide some support to emerging-market currencies such as the rand by reducing pressure on US interest rates and the dollar.
The rand’s near-term direction will therefore depend on the balance between weaker US economic data, rising gold prices and ongoing geopolitical risks surrounding oil and the Strait of Hormuz.
Important finance and investing news
Social grant stress: The National Treasury warned that extending the SRD grant to 18 million people at R430 will cost the country an additional R93.5 billion per year. [BusinessDay]
SpaceX has its best day yet: SpaceX stock surged 15.8% on Friday, marking its best day ever. This momentum carried into the late week, resulting in a nearly 23% increase for the week. It was SpaceX’s highest closing price since July 15th. [Yahoo Finance]
R4.6 billion Parliament reconstruction underway: The Development Bank of Southern Africa announced that the R4.6 billion reconstruction of Parliament is on track to be completed in 2027 and is operating within budget. [EWN]
NVIDIA’s big data centre investment: NVIDIA plans to invest up to $3 billion in Lancium, a developer of power infrastructure and the company behind the Stargate data centre campus in Texas. The chipmaker will initially invest $2 billion to acquire approximately a 20% stake in Lancium, which is backed by Blackstone. [Reuters]
Big Toyota recall: The National Consumer Commission has announced a safety recall of 518 Toyota vehicles due to a reprogramming issue with the combination meter affecting certain models, including the RAV4 PHEV, Corolla Cross, Corolla Hatchback, Crown, and GR Corolla. [eNCA]
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