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Rand weakens to R16.50 per dollar as global markets fall

Published

The rand fell to its softest level in a week early on Friday, from a R16.37 close on Wednesday. Global markets lost ground on renewed doubts over AI spending and a higher oil price after another attack on Saudi Arabia.

Wall Street fell sharply on Thursday. The Nasdaq closed almost 3% lower and the S&P 500 fell 1.2%. Shares in Meta Platforms dropped 7% even after the company gave an upbeat earnings update. On the JSE, losses were more than 1%.

Brent crude traded above $100 since the start of October. Reports said a surge in oil prices followed another attack on Saudi Arabia. The Japanese yen gained about 1% and is on course for its biggest weekly gain since early September.

Tomoichiro Kubota, chief market analyst at Matsui Securities Co., said: "It may be that the AI bubble has started to burst." Reports said Reserve Bank Governor Lesetja Kganyago has warned of an AI bust since November 2025, and that it would hurt the rand.

Markets now wait for interest rate decisions from the US Federal Reserve and the European Central Bank next week. Investors expect both to hold rates.

Key facts

Who
Lesetja Kganyago (SA Reserve Bank Governor); Tomoichiro Kubota (chief market analyst at Matsui Securities Co.); Peter Tuchman (US stock trader known as the 'Einstein of Wall Street')
What
The rand fell to R16.50 per dollar early on Friday, from a R16.37 close on Wednesday, as risk aversion spread through global markets. Reports cited by the article link the moves to doubts over tech companies' AI spending and a surge in oil prices after another attack on Saudi Arabia.
When
23 October 2026
Where
South Africa, United States, Saudi Arabia
Status
Reported

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