South African Rand at Near 2-Month Low

2026-09-28 11:24 By Luisa Carvalho 1 min. read

The South African rand traded around 16.4 per USD, its weakest level since early August, as stalled US-Iran negotiations pushed oil prices higher, weighing on risk-sensitive currencies in oil-importing economies.

At the same time, heightened geopolitical uncertainty boosted safe-haven demand for the greenback, while declines in key precious metals prices removed support for the rand.

Locally, the South African Reserve Bank raised its key repo rate to 7.25% on September 23, following similar decisions by the Fed and the ECB.

Governor Kganyago cited renewed upside risks to the inflation outlook and stressed the need to bring inflation back to the SARB’s 3% target, reaffirming the central bank’s commitment to price stability.

The Reserve Bank noted the global fuel-price shock had intensified recently and raised its near-term inflation forecasts accordingly.

Headline inflation ticked up to 4.4% in August from 4.3% in July, but is expected to accelerate in the next few months.



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South African Rand at Near 2-Month Low
The South African rand traded around 16.4 per USD, its weakest level since early August, as stalled US-Iran negotiations pushed oil prices higher, weighing on risk-sensitive currencies in oil-importing economies. At the same time, heightened geopolitical uncertainty boosted safe-haven demand for the greenback, while declines in key precious metals prices removed support for the rand. Locally, the South African Reserve Bank raised its key repo rate to 7.25% on September 23, following similar decisions by the Fed and the ECB. Governor Kganyago cited renewed upside risks to the inflation outlook and stressed the need to bring inflation back to the SARB’s 3% target, reaffirming the central bank’s commitment to price stability. The Reserve Bank noted the global fuel-price shock had intensified recently and raised its near-term inflation forecasts accordingly. Headline inflation ticked up to 4.4% in August from 4.3% in July, but is expected to accelerate in the next few months.
2026-09-28
South African Rand Slightly Firmer
The South African rand edged up to around 16.3 per USD, benefiting from falling oil prices, a softer US dollar and rising prices of precious metals, particularly gold. Oil prices decreased amid reports of a possible phased agreement between US and Iranian negotiators to reopen the Strait of Hormuz, though uncertainty remains elevated. Meanwhile, the South African Reserve Bank, in an expected move, raised its key repo rate to 7.25%, following similar decisions by the Federal Reserve and the ECB. Policymakers cited renewed upside risks following the escalation of the Iran war, which pushed up oil prices and dampened the global economic outlook. Governor Lesetja Kganyago stressed the need to bring inflation back to the SARB’s 3% target, reaffirming its commitment to price stability. Headline inflation ticked up to 4.4% in August from 4.3% in July, but rising fuel prices could push it higher again in September and October.
2026-09-25
South African Rand at Over 1-Month Low
The South African rand weakened toward 16.5 per USD, its lowest since early August, pressured by a firmer US dollar and falling prices of precious metals, particularly gold. Risk sentiment also remained fragile amid mounting inflationary pressures from the Middle East. Meanwhile, the South African Reserve Bank decided to raise its key repo rate to 7.25%, in line with expectations, underscoring the central bank’s commitment to bringing inflation back toward its 3% target. Policymakers cited renewed upside risks following the escalation of the Iran war, which pushed up oil prices and dampened the global economic outlook. They also noted South Africa’s economy contracted in Q2, while inflation has increased well above the SARB's target. Headline inflation ticked up to 4.4% in August from 4.3% in July, just below expectations of 4.5%. Looking ahead, Kganyago said the central bank’s projections point to a broadly stable policy rate through the remainder of the year.
2026-09-23