The South African rand traded around 16.3 per USD, near the highest since early June, as hopes for a imminent US-Iran deal boosted risk appetite and weighed on the US dollar. President Donald Trump called off planned strikes on Iran on Thursday while indicating that a peace agreement could be finalized as early as this weekend. Oil prices retreated, as investors priced in easing risks to energy supplies and inflation. Meanwhile, the South African Reserve Bank (SARB) noted in its June Financial Stability Review that borrowing costs may rise again later this year, as escalating tensions in the Middle East reshape the inflation outlook and heighten risks to financial stability. In the meantime, the central bank stated the country's financial system remains resilient despite growing global challenges.