South African Rand Weaker

The South African rand weakened to around 16.3 per USD, pressured by a firmer US dollar and falling prices of precious metals, particularly gold. Meanwhile, traders digested the South African Reserve Bank’s latest policy decision to raise its key repo rate to 7.25%, in line with expectations. Policymakers cited the need to bring inflation back to its 3% target after the escalation of the Iran war pushed up oil prices and dampened the global economic outlook.