South African Rand Hovers Around 2-Week Low

2026-04-22 08:55 By Luisa Carvalho 1 min. read

The South African rand traded around 16.5 per USD, the lowest level in two weeks, as traders assessed the latest inflation data, while also monitoring geopolitical risks.

South Africa’s inflation rate edged up to 3.1% in March from 3% in February, remaining close to the South African Reserve Bank’s (SARB) new 3% target.

The slight increase suggests price pressures remain contained for now, though inflation is expected to quicken in April due to the lagged impact of higher oil prices stemming from the Iran conflict.

The central bank is likely to focus on incoming data ahead of its policy meeting on May 28.

Governor Lesetja Kganyago recently cautioned that rate hikes remain possible, with higher fuel and fertiliser costs potentially pushing inflation higher and prompting policy action.

Economists remain divided on the policy outlook, with some expecting the benchmark rate to stay at 6.75% through year-end, while others price in at least a 25-basis-point hike in May.



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