The South African rand traded around 18.1 per USD, its lowest level since May 19, pressured by a stronger dollar and uncertainty over a trade agreement with the US before the August 1 deadline. South Africa’s trade minister stated that, urged by US officials, it is working on a last-minute “enhanced” trade proposal to avoid a 30% tariff scheduled for Friday. Meanwhile, the South African Reserve Bank announced a 25-basis-point cut to the benchmark repo rate, lowering it to 7%, as inflation remains contained against a backdrop of global economic uncertainty. Policymakers noted that the rand’s strength and moderating expectations helped keep headline CPI at 3% and core inflation at 2.9% in June, at the bottom of the target range. Meanwhile, Governor Kganyago said that the MPC now aims for inflation to settle at 3%, the lower end of the 3% to 6% target range and that the central bank will use forecasts with a 3% inflation anchor at future meetings.