South African Rand Loses Ground
The South African rand weakened to around 16.6 per USD, nearing its July lows, as hotter-than-expected US inflation data for September boosted expectations of a Federal Reserve rate hike later this month, strengthening the dollar and weighing on emerging-market currencies. Lower prices for key precious metals, particularly gold and platinum-group metals (PGMs), added to the pressure by threatening export earnings. Meanwhile, escalating hostilities between Saudi Arabia and Iran-backed Houthi rebels pushed oil prices higher, raising import costs for South Africa, a net oil importer.
6 per USD, nearing its July lows, as hotter-than-expected US inflation data for September boosted expectations of a Federal Reserve rate hike later this month, strengthening the dollar and weighing on emerging-market currencies. Lower prices for key precious metals, particularly gold and platinum-group metals (PGMs), added to the pressure by threatening export earnings. Meanwhile, escalating hostilities between Saudi Arabia and Iran-backed Houthi rebels pushed oil prices higher, raising import costs for South Africa, a net oil importer.