The South African rand weakened toward 16.4 per USD as investors sought safety in the US dollar amid rising inflation risks linked to the conflict involving Iran. The currency has come under sustained pressure, weighed down by global risk aversion and volatile oil prices — a particular concern for South Africa as a net importer of fuel. These dynamics complicate the country’s inflation outlook ahead of the South African Reserve Bank’s next policy meeting on March 26.
On the domestic front, recent data showed that the South African economy posted its fifth consecutive quarter of growth in Q4 2025, expanding by 0.4%, slightly above the 0.3% forecast by analysts. For the full year, GDP grew by 1.1%, marking a modest recovery after years marred by load shedding, though still falling short of the National Treasury’s 1.4% projection and the Reserve Bank’s 1.3% estimate.
