The South African rand has dropped below R16 to the US dollar once again this week.
Image: AI / ChatGPT
The South African rand was below the R16 to the US dollar mark on Wednesday morning, ahead of Finance Minister Enoch Godongwana's National Budget Speech.
The local currency dipped to R15.92 at 8am local time as investors positioned themselves ahead of the minister's highly anticipated presentation in Parliament. Expectations of credible deficit reduction, stabilising public debt and continued reform have lifted sentiment and supported the currency, according to reports.
On the international front, stock markets in Seoul and Tokyo surged to record highs as tech firms led an Asia-wide rally on Wednesday following a rebound in their counterparts on Wall Street.
Investors built on a broadly healthy week in the region as they piled onto the artificial intelligence bandwagon amid a shift from New York, where there is growing concern about elevated valuations as well as US political and economic uncertainty.
They are also keeping an eye on President Donald Trump's State of the Union address, which comes after his tariff policy was dealt a body blow by the Supreme Court on Friday and as he considers strikes on Iran.
Wall Street's tech titans, including Magnificent Seven stalwarts, have struggled in 2026 to match the past two years' eye-watering performance, with questions being asked about the vast sums they have invested in AI and when they will see returns.
Fresh worries about the recent release of tools that could hammer software firms have compounded the problems.
Focus is now on the release of earnings from chip behemoth Nvidia later in the day, with analysts saying they could have an outsized impact on markets.
But Matt Weller at City Index warned: "Put simply, 'meeting' earnings expectations is unlikely to be enough to drive the stock higher, especially if conservative guidance reinforces some traders' fears that demand for AI (capital expenditure) may be downshifting."
A rally on all three main bourses on Wall Street provided a healthy lead for Asia, which has also enjoyed a lift from the Supreme Court's tariff announcement.
Seoul's Kospi jumped past 6,000 points for the first time, led once again by chip titans Samsung and SK hynix. The index has surged more than 40 percent this year, having rallied 76 percent in 2025.
Tokyo piled on more than one percent to also hit a new peak, with tech firms Advantest and Tokyo Electron among the best performers.
Taipei's gains were supported by Taiwan Semiconductor Manufacturing Company.
Hong Kong, Shanghai, Sydney and Wellington were also higher.
IOL & AFP