MyCURRENCY News | Week 22 2025

What we know

The Rand once again managed to remain below 18 against the Dollar for the majority of the week. While the Rand has shown relative strength, this performance is also largely attributed to Dollar weakness, as the Dollar Index lingered below 100 for most of last week.

Starting with the Dollar: what was once considered one of the more stable global currencies has experienced increased volatility since Donald Trump assumed office for his second term. On Friday, he announced a tariff increase from 25% to 50% on steel and aluminium imports from the UK, effective from 4 June. This move once again highlighted his impulsive decision-making style, raising investor concerns about the broader implications for global trade.

Locally, the most significant news for the Rand this week was the South African Reserve Bank’s announcement on Thursday to cut the benchmark repo rate by 25 basis points. This decision, motivated by a desire to keep inflation below the 3% target, signalled a more dovish monetary policy stance and contributed to further Rand strength. As a result, the Rand reached its strongest levels of the week on Thursday, trading as low as 17.75 against the US Dollar, dipping below 24 against the British Pound, and reaching 20.12 against the Euro.

Beyond South Africa, several key economic data releases came from developed economies:

• Australia & New Zealand: Consumer inflation figures for April came in slightly above the expectation of 2.3%, holding steady at 2.4%, causing a modest decline in the currency. Meanwhile, on Wednesday, the Reserve Bank of New Zealand cut interest rates by 25 basis points. The market reaction was muted, as the move was in line with expectations.
• United States: Preliminary GDP data revealed a contraction in the economy by an annualised rate of 0.2% in the first quarter; slightly better than the initial estimate of -0.3%, but still marking the first decline in three years.
• Canada: Final GDP figures showed the economy grew at an annualised rate of 2.2%, beating analysts’ expectations of 1.7%. This data, released on Friday, was driven by an increase in exports and led to an appreciation of the Canadian Dollar against the US Dollar.
• Eurozone: The region’s GDP growth for the quarter was revised upward to 0.4%, exceeding the initial estimate of 0.2%. However, the market response was subdued, indicating ongoing caution amid persistent economic uncertainty.

What others say

AP News – Bulgarian nationalists protest government plans to adopt the euro currency

“Thousands of flag-waving Bulgarians took to the streets of the capital, Sofia, and other major cities on Saturday to protest government plans to adopt the euro and to demand a referendum on the new currency.“

The Guardian – UK forging ahead with US trade talks, despite court block on Trump’s tariffs

“British officials are forging ahead in their trade talks with the US despite a recent court decision overturning many of Donald Trump’s tariffs, and hope to have a deals covering cars, metals and aeroplane parts in place within weeks.“