The South African rand traded below 16.9 per USD, the highest level since January 2023, supported by higher prices of precious metals, particularly gold. Meanwhile, traders positioned themselves for a busy week of economic data, with the main focus on November inflation data due on December 17. Latest data showed South African inflation expectations have dropped sharply following the Finance Minister Enoch Godongwana’s lowering of the inflation target, opening the door for further interest rate cuts. The currency has gained over 10% against the greenback this year, helped by an improving fiscal and economic backdrop, moderating inflation and elevated commodity prices, especially gold and platinum. Trade uncertainty between the US and South Africa, along with the risk of political frictions within the coalition government, remains the main threat to the country’s outlook.