The US dollar has suffered heavy losses as bulls who had accumulated large long positions in preparation for a trade war pulled out while Trump procrastinates on tariffs. The dollar index hit its lowest level for 2025 at 106.29 on Thursday and was last at 106.45. The US dollar is near its lowest levels since the start of the year, which favors emerging market currencies such as the rand. Meanwhile, gold prices, one of South Africa's main export commodities, are on track for an eighth week of increases.

The Australian and New Zealand dollars hovered near their highest levels in two months on Friday as concerns about a global trade war eased somewhat, while the Australian central bank took an aggressive tone on future rate cuts. The New Zealand dollar held steady at $0.5766, after jumping 1.0% overnight to break the resistance at

The Chinese yuan strengthened to its highest level in nearly three months on Friday, supported by investor optimism that the United States and China could reach a deal that would avoid a trade war, and by improved sentiment on Chinese stock markets. The onshore yuan hit 7.2347 to the dollar on Friday, its highest level since November 29, 2024, before curtailing some gains. Overnight, the offshore yuan hit a nearly 3-month high, while the dollar fell to a 2-month low. The offshore yuan traded at 7.2403 yuan to the dollar, down by about 0.04% in Asian trade.