FX.co ★ South African Rand Firmer

The South African rand traded around 16.4 per US dollar, near its strongest level since July 22, supported by higher prices for key precious metals such as gold and PGMs. Signs of diplomatic progress toward ending the conflict in the Middle East helped ease concerns about inflation and further interest rate hikes. The currency had dropped to a three-month low against the dollar last month after the South African Reserve Bank unexpectedly left interest rates unchanged on July 23, despite warning of mounting inflation risks.