2026.06.1511:06:45UTC+00South African Rand Climbs to Three-Month High

The South African rand appreciated to 16.2 per US dollar, its strongest level since early March, as investors moved back into risk-sensitive assets following news of a preliminary agreement between the United States and Iran to end their three-month conflict. The deal, which calls for lifting the US blockade and reopening the Strait of Hormuz, is expected to be signed in Switzerland on Friday. Still, market participants remain cautious, awaiting further details amid lingering uncertainty over the future of Iran’s nuclear program. A sharp drop in oil prices has also bolstered sentiment by easing inflationary pressures and tempering expectations of additional interest rate hikes. In its latest Financial Stability Review, the South African Reserve Bank (SARB) observed that a prolonged conflict could have justified another rate increase later this year. On May 28, the central bank raised its benchmark interest rate by 25 basis points to 7%, its first hike in three years.