The South African rand traded around 17.7 per US dollar, its lowest in over a week, reflecting a mild uptick in the greenback. Domestically, inflation accelerated to a 10-month high of 3.5% in July, remaining within the South African Reserve Bank’s (SARB) target range. Governor Lesetja Kganyago earlier this month noted that inflation is expected to rise in the coming months before gradually returning to around 3% in the medium term, with the central bank favoring a level closer to the lower end of its 3%–6% target. Although inflation has been subdued so far in 2025, rising food prices pose some upside risk, which is expected to be offset by declining global oil prices. The medium-term outlook, however, remains uncertain amid a potential revision of South Africa’s inflation target. Meanwhile, the economy faces external headwinds from a 30% US tariff on exports, likely weighing on the key agricultural and automotive sectors.