The South African rand depreciated toward 16.1 per USD, the lowest in over a week, as escalating Middle East tensions fueled economic uncertainty and reduced appetite for riskier assets, including emerging market currencies. Moreover, concerns over prolonged disruptions to oil flows in the Middle East heightened inflation fears, prompting investors to scale back expectations for interest rate cuts by major central banks. On the domestic front, South Africa's economy continued to experience favorable developments. Finance Minister Enoch Godongwana unveiled a budget last week showing the debt-to-GDP ratio stabilizing for the first time in nearly two decades, alongside a slightly lower fiscal deficit than previously forecast. The improvement, largely supported by a commodity boom boosting mining profits, allowed room for tax relief and higher infrastructure spending.