South African Rand Climbs to Two Weeks High
The South African rand appreciated further to around 17.8 per UD dollar, a level not seen since June 12, benefiting from a weakening dollar and an improving risk sentiment amid signs of de-escalation in Middle East tensions.
This helped to ease inflation fears and supported expectations of interest rate cuts by the US Federal Reserve, with Fed Chair Powell keeping the possibility of a July cut on the table.
Domestically, the South African Reserve Bank, in its latest biannual Financial Stability Review published on June 19, noted that growing geopolitical upheaval and global policy uncertainty are among the biggest risks facing the country’s financial sector.
However, Governor Lesetja Kganyago said South Africa’s financial system was so far demonstrating a high degree of resilience in response to global shocks. #South African Rand Climbs to Two Weeks High#
