MyCURRENCY News | Week 19 2025

What we know

The Rand, while mostly moving sideways against the GBP, EUR, and USD last week, has been showing signs of appreciation. On Thursday, the Rand strengthened against the USD, GBP, and EUR to levels not seen since the first week of April, reaching 18.08 against the US Dollar, before weakening by roughly 15 cents.

On Thursday, it was announced that the US and UK had reached their first trade deal. With global trade negotiations involving the US beginning to take shape, market risk appetite has increased. Meanwhile, trade talks between the US and China began on Saturday and although Trump stated on Friday that imposing an 80% tariff on China “seems right,” developments have since pointed to a reciprocal 10% tariff between the two countries.

Now, all South Africa needs to do is stay quiet on the global stage, and while Pakistan, India, and what appears to be the entire world slowly go to war, South Africa may remain an island of peace and benefit from increased ‘risk-on’ sentiment.

Key financial indicators released last week included the Bank of England cutting interest rates by 25 basis points. Meanwhile, the Federal Reserve left its interest rates unchanged for the third consecutive time, as Jerome Powell adopted a ‘wait and see’ approach amidst global uncertainty surrounding US tariffs.

What others say

Moneyweb – US and China agree to major reductions in tariffs for 90 days

“The US and China will temporarily lower tariffs on each other’s products, according to a joint statement released in Geneva, in a move to cool trade tensions and give the world’s two largest economies three more months to resolve their differences.”

Reuters – Moody’s says tariffs may hit African banks through China slowdown

“Banks in sub-Saharan Africa will not be directly impacted by U.S. import tariffs, but “second round effects”, including their impact on the macroeconomic outlook and on China, could still bite, credit rating agency Moody’s said.”