June 23, 2025
MyCURRENCY News | Week 25 2025
What we know
The Rand traded for most of the week between 17.92 and 18.14 against the US dollar, with the Rand reaching its weakest level of the month at 18.15 on Thursday. Friday trading saw the Rand strengthen slightly, closing just below the 18.00 figure.
Geopolitical tensions have continued to soar as the US, supporting Israel, struck three Iranian nuclear facilities on Saturday. Further, the Russia/Ukraine war continues to intensify as Russia attacked the Kyiv region last night. These ongoing developments are driving investors further towards a risk-off sentiment.
In local news, the SARB Financial Stability Review, released on Thursday, highlighted that while the country’s financial system has managed to remain resilient, it is facing increased risks from its subdued economic growth, increased global financial volatility, and fiscal pressures. Additionally, concerns were raised about the rising government debt and the vulnerabilities of corporates and households to tighter financial conditions.
A few key financial indicators released last week included the interest rate decisions of the US, UK, and Japan, which all remained constant and in line with market expectations, having little impact on the market.
What others say
News24 – Khaya Sithole | New unity government, same old habits
“The government of national unity is struggling to address South Africa’s deep socioeconomic crises as it buckles under a toxic mix of ideological divisions, chronic indecision, and the ANC’s reluctance to make tough policy choices.“
Daily Maverick – US joining war on Iran creates major political headache for SA
“With the world on tenterhooks following the US bombing of Iranian nuclear sites, South African politicians have been notably cautious in articulating their initial positions.“
Morningbrew – Amazon’s CEO says the AI takeover is coming
“Amazon CEO Andy Jassy sent a memo to employees this week saying that the tech giant will likely shrink its head count in coming years as AI chatbots and agents take on more of the workload.“
Reuters – As gold prices surge, West Africa mine operators launch drones to detect wildcat miners
“As the afternoon sun beats down on Gold Fields’ sprawling Tarkwa gold mine in southwestern Ghana, three men launch a drone into the clear sky, its cameras scanning the lush 210-square-kilometer tract for intruders.“
What we think
Last week we said that “As emerging market sentiment remains mostly positive, we do expect the Rand to maintain this recent bullishness and continue its upward trajectory despite the recent blip.”
As was revealed, the increased geopolitical tensions moved investors further towards safe-haven assets, resulting in a further weakening of the Rand against the US dollar. This trend is likely to continue as there seems to be no apparent let-up in the ongoing conflict. This risk-off sentiment has also been evident among other emerging markets, where many have also seen a weakening in their respective currency values.
Economic releases in the week ahead include the final figures for US GDP growth rate for Q1, Federal Reserve Chair Jerome Powell’s testimony, as well as South Africa releasing PPI data. Powell’s testimony could significantly move markets, as investors seek insights and clues into the Fed’s future monetary policy decisions.
Our range for the week: R17.95 – R18.30.
Have a great week ahead.