The South African rand strengthened to around 15.97 per USD, approaching June 2022 highs, mainly supported by a rebound in prices of key precious metals, particularly gold. Meanwhile, South Africa’s inflation rate eased to 3.5% in January from 3.6% in December, though less than the expected 3.4%, reducing expectations of a potential interest rate cut when policymakers meet next month. The South African Reserve Bank kept the benchmark rate at 6.75% in January, citing global uncertainty and the risk that rising food and electricity prices could push inflation above the revised 2026 forecast of 3.3%. With the new target set at 3%, sustained moderation in inflation will be essential before any rate cuts. A combination of structural reforms, fiscal consolidation, credible monetary policy, and a stable governing coalition continued to bolster the currency.