The rand gained against hard currencies on Friday, breaking a four-day losing streak against the dollar after President Cyril Ramaphosa announced plans on Thursday night to gradually restart the economy.
Ramaphosa said SA will implement a risk-adjusted strategy with lockdown restrictions to ease slightly from the beginning of May.
Some businesses will open under strict conditions, but many of the current restrictions will remain in place, as the risk of infection remains high.
The rand, which lost 1.02% against the dollar this week despite gaining on Friday, according to Infront data, has taken a knock as the Covid-19 pandemic continues to threaten the global economy and financial markets, with investors remaining fairly cautious.
“South Africans breathed a sigh of relief to learn that we will prepare to open the economy on a phased basis on May 1,” said Peregrine Treasury Solutions executive director Bianca Botes.
At 6.27pm, the rand had strengthened 0.70% to R18.9750/$, 0.48% to R20.4886/€ and 0.72% to R23.4229/£. The euro was up 0.13% to $1.0792.
The rand has lost 5.73% to the dollar so far in April, and is down more than 26% in 2020, according to Infront data.
The JSE tracked its global counterparts weaker on Friday, as doubts about progress in the development of drugs to treat the coronavirus weighed on investor sentiment.
The JSE all share lost 0.15% to 49,527.23 points, with the top 40 falling a similar margin. Platinum miners gained 1.16%, the gold index 3.75% and resources 0.37%. Industrials fell 0.74%.
Gold gave up 0.84% to $1,717.40/oz, while platinum gained 0.36% to $756.25. Brent crude was down 0.42% to $21.47 a barrel.
“Stock markets rallied but came to a shuddering halt after a leaked study from China suggested Gilead Science’s remdesivir drug had no positive effect on Covid-19 patients. I wouldn't count it out just yet though, the sample was small, and the trial ended early,” Oanda senior analyst Jeffrey Halley said in a note.
“Also, Gilead has 4,000 patients in trials around the world, a statistically significant sample.”
Finance minister Tito Mboweni provided no new details in a briefing on Friday on how the government plans to fund its R500bn economic support package aimed at mitigating the damage caused to the economy by the pandemic.
The government has already confirmed that it will take a $1bn loan from the New Development Bank, a sum to which all member states are automatically entitled, to address the Covid-19 crisis.
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