South African Rand Remains Subdued
The South African rand traded around 16.3 per USD, holding close to the lowest since early August, as the US dollar's strength and still elevated oil prices outweighed support from precious-metals prices. Meanwhile, market sentiment remained fragile amid heightened hostilities in the Middle East and further advances by the Houthis. On the domestic economic front, a closely watched gauge of South African inflation expectations fell in the third quarter after surging in the previous quarter due to the oil shock triggered by the US-Iran conflict. The data prompted investors to reduce bets on a possible 25 bps rate hike at the SARB's upcoming policy decision on September 23. Meanwhile, headline inflation eased to 4.3% in July from 5% in June, but the moderation could prove temporary due to domestic fuel price adjustments in August and September. Market participants now wait for inflation figures for August, due next week.
3 per USD, holding close to the lowest since early August, as the US dollar's strength and still elevated oil prices outweighed support from precious-metals prices. Meanwhile, market sentiment remained fragile amid heightened hostilities in the Middle East and further advances by the Houthis. On the domestic economic front, a closely watched gauge of South African inflation expectations fell in the third quarter after surging in the previous quarter due to the oil shock triggered by the US-Iran conflict. The data prompted investors to reduce bets on a possible 25 bps rate hike at the SARB's upcoming policy decision on September 23.
3% in July from 5% in June, but the moderation could prove temporary due to domestic fuel price adjustments in August and September. Market participants now wait for inflation figures for August, due next week.