The South African rand traded around 16.2 per USD, holding near its highest since early March, supported by a subdued dollar and rising prices of gold. Meanwhile, traders assessed the latest domestic inflation figures to gauge the interest rate outlook. South Africa’s annual inflation rate decelerated to 4.3% in July from 5% in June, below the expected 4.5%, helped by lower fuel costs after a temporary US-Iran truce. However, the core measure quickened for the fifth month to 4.2%, the highest since July 2024, up from 4.1% in June. This strengthens the case for the central bank to keep interest rates unchanged for now as it assesses the potential impact of the Iran conflict on inflation and economic activity. The SARB maintained its policy rate at 7% last month, citing a more favorable inflation outlook and expectations that price pressures will return to the 3% target. The next decision is scheduled for September 23.