The South African rand traded around 16.4 per US dollar, close to the highest since July 22, supported by higher prices of key precious metal prices such as gold and PGMs. Signs of diplomatic progress to end the Middle East conflict tempered fears over inflation and interest rates increases. The currency slumped to a three-month low against the dollar last month after the South African Reserve Bank unexpectedly kept rates unchanged on July 23, even as it warned of rising inflation risks.