South African Rand Remains Subdued

2026-08-31 14:48 By Luisa Carvalho 1 min. read

The South African rand traded around 16.1 per US dollar, near the lowest since August 18, pressured by a firm dollar and weaker precious metals prices following Fed Chair Kevin Warsh's hawkish remarks.

Meanwhile, fresh US-Iran strikes in the Middle East weighed on risk sentiment and sent oil prices higher.

In South Africa, petrol and diesel prices are set for sharp hikes from September 2 following the latest monthly adjustment, as the Middle East crisis keeps international oil prices elevated, adding to inflationary pressures.

South Africa's inflation rate fell to 4.3% in July from 5% in June, below forecasts of 4.5%, helped by softer fuel costs following a temporary US-Iran truce.

The South African Reserve Bank (SARB) kept rates unchanged in July, after raising them in May, giving policymakers more time to assess the persistence of inflationary pressures and the broader inflation outlook.

The September decision is likely to be another close call, with a hold and a hike both possible.



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