The South African rand firmed as investors positioned ahead of June inflation figures due on Wednesday and the central bank’s policy decision on Thursday, while also tracking developments in the Middle East. Annual inflation is forecast to quicken to 4.7% in June from 4.5% in May, and the South African Reserve Bank is widely expected to lift its benchmark interest rate by 25 basis points to 7.25%.
Brent crude prices eased but remained elevated amid reports of renewed US–Iran ceasefire efforts, even as US military strikes in Iran continued. At the same time, gold—one of South Africa’s key exports—advanced as investors weighed diplomatic optimism against persistent geopolitical risks and their potential impact on inflation and the Federal Reserve’s policy trajectory.
