The South African rand strengthened to around 16.4 per USD, the highest in over two weeks, as renewed hopes of a US-Iran peace deal boosted risk appetite. Oil prices extended losses while precious metals climbed after US President Trump signaled progress toward a possible agreement with Iran and suggested tensions around the Strait of Hormuz may ease. This development eased inflation concerns and tempered expectations that major central banks may need to raise interest rates. South Africa continues to face a challenging economic backdrop, with inflation pressures and weak growth influencing the central bank's policy. Inflation rose to 3.1% in March and is expected to climb further amid higher energy and food costs. South African Reserve Bank (SARB) Governor Lesetja Kganyago recently signalled uncertainty over the interest rate path as the central bank navigates inflation risks from global shocks.