Author: Marketforces Africa

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…

British Pound Rises Against Dollar, Hovers at 4-Year High The British pound rose against the dollar by 2% to $1.373, marking its strongest weekly gain in nearly four months. At the current rate, the sterling is hovering near a four-year high amidst broader decline in the value of US dollar. The latest rally was driven mainly by a weaker US dollar, according to traders as the greenback lost momentum after initial strength during the Israel-Iran conflict faded. The US dollar also slipped on concerns over the Federal Reserve’s independence amid speculation that President Trump may replace Chair Powell, raising expectations…

US Dollar Index Stabilises after Significant Pressure The dollar index held steady at 97.2 on Friday, hovering near its lowest level since February 2022, after a four-day slide in which the greenback lost around 1.5%, driven by mounting expectations of Fed rate cuts. Chair Powell struck a notably dovish tone during recent congressional testimony, suggesting that in the absence of inflationary pressures from tariffs, the Fed would have continued its rate-cutting cycle. The ceasefire between Iran and Israel is holding, boosting risk sentiment, while concerns about the Federal Reserve’s independence emerged after reports that President Trump is considering an early…

Euro Surpassed $1.17, 4-Year High in FX Market The European currency, the euro, continued to appreciate against the US dollar in FX market, surpassing $1.17 and reaching a fresh 2021 high, bolstered by a general weakness in the dollar. EURUSD increased to a near 4-year high of $1.17, according to FX trading data at the close of session on Friday. Over the past 4 weeks, Euro US Dollar gained 3.98%, and in the last 12 months, it increased 9.61%. On the economic front, the Ifo business climate for Germany improved to the highest in nearly a year but flash PMIs…

ICAN Hails Tinubu on New Tax Law The Institute of Chartered Accountants of Nigeria (ICAN) has commended President Bola Tinubu for signing into law four tax reform bills on key areas of Nigeria’s fiscal and revenue framework. Malam Haruna Yahaya, the 61st President of the institute, gave the commendation at the investiture of Sani Danbaba as the 5th chairman of Gwagwalada and District Society of ICAN in Gwagwalada town, Federal Capital Territory The the event also witnessed the inauguration of the Executive Committee for the district. Yahaya commended the President for the novel holistic review of the tax laws of…

Zenith Bank Gains 16% to N2.382trn as Investors Confidence Rises Zenith Bank Plc’s market value increased strongly in the equities market on the back of increased bargain hunting on the Nigerian Exchange, spurred by rising investors’ confidence. The bank’s market value rose to N2.382 trillion at the close of the trading session on the Nigerian bourse, up by 16.23% week on week, on the back of improved trading activities. For buy-side stock market investors, the second quarter earnings release and potential dividend announcement are the next catalysts that could fuel Zenith Bank’s price adjustment. The market hopes earnings will not…

Commodity Market Sees 12% Weekly Drop in Oil Prices The global commodity recorded about 12% drop in crude oil prices week on week as tensions between Iran and Israel began to ease as the two warring nations counted losses. Oil prices experienced their steepest weekly decline since March 2023 on Friday, as fears of a prolonged supply shock from the brief Israel-Iran war faded after the cease-fire announcement. The international benchmark Brent crude was trading at $66.98 per barrel on Friday, marking a drop of around 11.7% from last week’s closing price of $75.91. Similarly, the American benchmark West Texas…

Tanzania Unlocks Access to $448 Million IMF Loans Tanzania has unlocked a $448 million loan from the International Monetary Fund (IMF), according to an official statement released by the multilateral lender following the conclusion of the 2025 Article IV Consultation. The IMF Executive Board today concluded the 2025 Article IV Consultation and completed the fifth review under the Extended Credit Facility (ECF) arrangement and the second review under the Resilience and Sustainability Facility (RSF) arrangement with Tanzania, allowing for an immediate disbursement of about US$ 448.4 million under both the ECF and the RSF. The country’s economic conditions have continued…

Oil Prices Up over US Demand Outlook, Middle East Tensions Oil prices inched higher in the global commodity market on Thursday after a sharper-than-expected decline in US crude inventories signaled robust demand. However, market sentiment remains cautious due to lingering uncertainties over the durability of the ceasefire between Iran and Israel and broader regional stability in the Middle East. International benchmark Brent crude rose by 2.3%, trading at $66.91 per barrel at 09.50 a.m. local time (0650 GMT), up from $66.41 at the previous session’s close. Similarly, US benchmark West Texas Intermediate (WTI) increased by about 2.3%, settling at $64.94…

Sterling’s rally has more room to run – CEO The British pound is surging—and the momentum shows few signs of slowing, predicts one of the world’s largest independent financial advisory and asset management organizations. On Thursday, sterling climbed to its highest level in nearly four years, touching $1.3709 against the US dollar. This marks a 13% gain so far in 2025, making the pound one of the top-performing major currencies of the year. “The pound is in flight right now and we believe it is likely going higher,” says Nigel Green, CEO of deVere Group. “Several key forces are aligning that…