South African Rand at Over 3-Week Low

2025-11-04 14:25 By Luisa Carvalho 1 min. read

The South African rand traded around 17.5 per USD, its lowest level since October 10, tracking a decline in prices of precious metals, particularly gold, on reduced expectations of further US rate cuts.

Domestically, an interest rate cut at the South African Reserve Bank’s November meeting appears unlikely, with the central bank still prioritizing efforts to pull inflation expectations down to 3%.

In July, the central bank signaled that it is implicitly aiming for inflation near the lower bound of its 3%–6% target range.

South Africa’s annual inflation rate ticked up to 3.4% in September 2025 from 3.3% in August, but coming slightly below market forecasts of 3.5%.

The rand is still up nearly 7% so far this year, supported by subdued inflation, the central bank’s credibility, an improved fiscal outlook and the stability of the coalition government.

This is despite the country's slow economic growth and heightened geopolitical risks since President Donald Trump took office.



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