MyCURRENCY News | Week 48 2025

What we know

The Rand benefited from another good week of trading last week, gaining around 1.5% against the Dollar. A mixture of less than favourable US economic data and strong figures locally such as a higher than expected increase in money supply contributed to the gains.

In the US, PPI figures, reflecting inflation in goods and services by domestic producers, landed at 0.3%, exactly as forecasted. Although this was better that the prior month (-0.1%), it was not enough to support the currency considering disappointing retail sales and durable goods data. Retail sales came in lower than forecast at 0.2% while durable goods orders came it at only 0.5% compared to a prior 3%.

Locally, it was not just M3 money supply pushing the Rand stronger – South Africa recorded a trade surplus of just over 15.5 Billion with private sector credit growth also pointing to a positive economic position locally.

Although the above do not generally affect exchange rates directly, the majority of the data released last week provides an indication of the general wellbeing of the economy. The market takes inference from these releases and thus the Rand was able to etch out gains throughout the week.

What others say

Reuters – JP Morgan shifts outlook on Fed rate cut to December

“the September jobs report may have sealed a 25 basis points cut at the December 9-10 FOMC meeting“.

Moneyweb – SA to remain active G20 participant despite Trump – Ramaphosa

“We must never allow others to try to redefine our country and cause divisions amongst us, or dictate who we are as a nation”.

Financial Times – Yen rises and bonds fall after BoJ governor hints at rate increase

“The yen strengthened against the dollar and bonds fell after Bank of Japan governor Kazuo Ueda gave one of his clearest indications yet that the central bank might raise interest rates this month”.