South African rand slips as risk appetite wanes, focus on central bank review

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South African rand slips as risk appetite wanes, focus on central bank review

4:59 CAT | 19 Jun 2025

File photo: A South African Rand is seen in this illustration picture taken November 5, 2020. REUTERS/Mike Hutchings/Illustration

The rand weakened in early trade on Thursday, weighed down by risk-off sentiment as the Iran-Israel conflict continued into a seventh day and as investors awaited the South African Reserve Bank’s (SARB) Financial Stability Review.

At 0651 GMT, the rand traded at 18.1075 against the U.S. dollar , roughly down 0.5% on Wednesday’s close, and at it’s lowest level in a month.

Later on Thursday, domestic investor attention will shift to the central bank’s June Financial Stability Review, in which it evaluates risks to the country’s financial stability and outlines the policy actions taken to mitigate them.

Last month, the SARB cut its main lending rate, but stressed that U.S. President Donald Trump’s trade war and elevated uncertainty were likely to pose risks.

South Africa’s benchmark 2035 government bond was weaker in early deals, with the yield rising 4 basis points to 10.16%.

Source: Reuters