The South African rand weakened to around 16.5 per USD, the lowest in over a week, as risk aversion increased after Trump threatened 10% tariffs on several European countries to pressure Denmark over Greenland. Meanwhile, local traders focused on domestic inflation data set for January 21, with analysts expecting a slight rise to 3.6% in December from 3.5% in November. The data will be crucial to the South African Reserve Bank's rate-cutting plans for 2026. Reports on mining and retail sales are also due this week, which should provide insights into the health of the economy. Further losses in the currency were limited by rising prices of precious metals, particularly gold.