The South African rand strengthened below 16 per US dollar, trading near its strongest level since the Iran war began in late February. A softer US dollar, elevated precious-metal prices and stronger appetite for emerging-market assets supported the currency, while lower oil prices and fading concerns over expanded US sanctions on Iran also helped. The rand also continues to benefit from the SARB’s relatively restrictive monetary stance and improving fiscal outlook. The South African Reserve Bank kept its policy rate at 7% in July after inflation rose to 5% in June. Inflation subsequently eased to 4.3% in July, helped by lower food and fuel prices, but remained above the 3% target and 4% upper tolerance limit. The elevated rate differential supports demand for rand-denominated assets, although persistent monetary tightness could constrain domestic demand and growth.