FX.co ★ South African Rand Subdued

The South African rand traded around 16.5 per USD, close to its weakest level since mid-May, weighed down by declining prices of key precious metals, especially gold and PGMs. Market sentiment turned cautious as tensions in the Middle East intensified following US–Iran strikes, while comments by Trump further undermined a fragile ceasefire and dimmed prospects for a broader peace agreement. At the same time, the South African Reserve Bank warned in its Financial Stability Review that the recent oil price shock could extend inflationary pressures, raising the risk of additional monetary tightening. The Bank also noted that its quarterly projection model now points to a further rate hike in 2026, following the 25-basis-point increase implemented on May 28.