The South African rand strengthened slightly toward 16.5 per USD, benefiting from a weaker dollar and rising prices of precious metals, particularly gold and PGMs. Positive economic data provided further support. The South African economy grew by 0.5% quarter-on-quarter in Q1 2026, following a 0.4% rise in Q4 and slightly above analysts' forecasts of 0.3%. Meanwhile, news that Iran and Israel had agreed to cease mutual attacks for now pulled oil prices lower, temporarily easing inflation and interest rate worries. The South African Reserve Bank (SARB) raised the key repo rate by 25 bps to 7.0% on May 28, the first hike in three years, as it responded to mounting inflationary pressures stemming from the Middle East conflict.