South African rand slips near one-week low on GDP, Middle East risks
The South African rand edged down to around 16.1 per USD, a near one-week low. Traders weighed South Africa’s Q2 GDP contraction of 0.2% and subdued risk sentiment amid Middle East tensions.
1 per USD, a near one-week low, as traders weighed weaker-than-expected domestic GDP data and subdued risk appetite amid Middle East tensions. 2% in Q2, ending six quarters of expansion, with the escalating Middle East conflict disrupting energy-intensive mining and manufacturing sectors. The SARB faces a delicate policy balancing act between bringing inflation back to target and supporting growth. Governor Lesetja Kganyago recently said policymakers can respond cautiously to the latest inflation shocks while staying committed to the 3% target.
3% in July from 5% in June, although the improvement may be temporary because of fuel price adjustments in August and September. Persistent high energy prices have also kept inflation concerns elevated and raised the prospect of tighter global monetary policy.