South African Rand Weakens
The South African rand edged down to around 16.5 per USD, pressured by a firmer greenback and lower prices of key precious metals. This followed hotter-than-expected US inflation data and hawkish remarks from a key Fed official, which supported bets for a potential 50-basis-point rate hike in December. Meanwhile, the continued decline in oil prices amid easing concerns over US-Iran tensions helped alleviate some concerns about imported inflation. At home, latest data painted a gloomy picture, with unemployment reaching 33.7% in Q3 and manufacturing activity declining for a second straight month in September. On the political front, South Africa’s ANC has suffered its worst-ever local election result, weakening its position in coalition negotiations and signalling a shift away from decades of electoral dominance towards a more competitive multiparty system.
The South African rand edged down to around 16.5 per USD, pressured by a firmer greenback and lower prices of key precious metals. This followed hotter-than-expected US inflation data and hawkish remarks from a key Fed official, which supported bets for a potential 50-basis-point rate hike in December. Meanwhile, the continued decline in oil prices amid easing concerns over US-Iran tensions helped alleviate some concerns about imported inflation. At home, latest data painted a gloomy picture, with unemployment reaching 33.7% in Q3 and manufacturing activity declining for a second straight month in September.
On the political front, South Africa’s ANC has suffered its worst-ever local election result, weakening its position in coalition negotiations and signalling a shift away from decades of electoral dominance towards a more competitive multiparty system.