The South African rand depreciated further to around 18.3 per USD, its lowest since early May, amid a firming dollar and as investors weighed the prospect of higher tariffs on the country's exports to the US. South Africa failed to meet the trade deal deadline with the United States and now faces a 30% tariff on its exports, set to take effect on August 7. Despite ongoing negotiations, the Trump administration confirmed that the tariff will proceed as planned. However, officials noted that a narrow window remains for South Africa to resolve the dispute and potentially avert the full impact of the trade penalty. Meanwhile, the central bank cut its key interest rate by 25 basis points to 7.00%, as expected, mainly reflecting concerns about the potential adverse impact of US tariffs on the economy. Governor Lesetja Kganyago also said the Monetary Policy Committee (MPC) will now aim for inflation expectations to settle at the bottom of its target range, 3%.