South African Reserve Bank Governor Lesetja Kganyago has praised the fortitude of the rand during the Iran war, highlighting its resilience compared to other emerging-market currencies. This unexpected strength may signal a shift in global sentiment toward US assets amid geopolitical tensions.

Kganyago suggested that the rand's performance could reflect a wider souring on US assets, potentially indicating that investors are diversifying away from dollar-denominated instruments. The governor's comments come as tensions in the Middle East continue to roil global financial markets, with investors seeking alternative safe havens.

The rand's stability could position South Africa more favorably for international investment flows, potentially boosting the country's economic prospects. This development may encourage other emerging markets to strengthen their currency policies against US dollar volatility in the current uncertain climate.