South African rand weakens ahead of unemployment data

JOHANNESBURG: The South African rand weakened in early trade on Tuesday, ahead of the release of labour market data, with traders expecting the unemployment rate to have remained largely unchanged in the fourth quarter of 2025.

At 0606 GMT, the rand traded at 16.0375 against the dollar , about 0.4% below Monday’s close.

Domestic investors are awaiting the unemployment data , due at 0930 GMT, to gauge the condition of the labour market of Africa’s most industrialised economy.

Lara Hodes, an economist at Investec, said unemployment will remain largely unchanged, perhaps easing marginally to 31.7% in Q4.

The country’s official jobless rate currently stands at 31.9%, one of the highest globally.

Nedbank economists expect the unemployment rate to hold close to 32% in the fourth quarter.

“Domestically oriented industries are likely to have benefited from consumer spending, easing logistical constraints and a more stable electricity supply,” Nedbank said.

“However, firms in export-oriented sectors, may have adopted a wait-and-see approach, delaying capacity expansion in response to higher tariffs and weak global demand.”

South Africa’s benchmark 2035 government bond traded flat in early deals, with the yield at 7.945%.