FX.co ★ South African Rand Hovers Around 2-Week Low

The South African rand hovered around 16.5 per USD, its weakest level in two weeks, as markets digested the latest inflation figures and tracked geopolitical developments that could shape the interest rate outlook. Annual inflation in South Africa ticked up to 3.1% in March from 3% in February, matching market expectations and staying close to the South African Reserve Bank’s new 3% target. The data indicate that price pressures remain contained for now, although inflation is expected to accelerate in April as the delayed impact of higher oil prices linked to the Iran conflict feeds through. Against this backdrop, the central bank is likely to scrutinize incoming data carefully ahead of its May 28 policy meeting.