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12.06.202610:48:36UTC+00South African Rand at Over 1-Week High

The South African rand traded around 16.3 per USD, near its strongest level since early June, as expectations of an imminent US–Iran agreement lifted risk appetite and pressured the US dollar. President Donald Trump called off planned strikes on Iran on Thursday, suggesting that a peace deal could be reached as soon as this weekend. Oil prices fell as investors priced in reduced risks to energy supply and inflation.

At the same time, the South African Reserve Bank (SARB), in its June Financial Stability Review, warned that borrowing costs may rise again later this year, as renewed tensions in the Middle East alter the inflation outlook and increase risks to financial stability. Nevertheless, the central bank emphasized that the country’s financial system remains resilient despite mounting global headwinds.

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