The South African rand traded around 16.2 per USD, its lowest since late August, pressured by elevated oil prices and a firmer dollar amid rising bets of a Fed rate hike next week. Risk sentiment remained fragile as escalating Middle East hostilities raised fears of a prolonged conflict, sending energy prices higher and clouding the inflation outlook. South Africa's inflation rate eased to 4.3% in July from 5% in June, but higher fuel prices are expected to rekindle price pressures. Meanwhile, recent data underscored the economy’s fragile footing. Mining production plunged a more-than-expected 7.5% in July, while manufacturing output unexpectedly rebounded 1.1% after a 1.8% decline in June. Separately, South Africa's GDP contracted 0.2% in Q2, ending a six-quarter expansion streak. Against this backdrop, the SARB faces a delicate balancing act later this month, weighing the need to keep inflation on track toward its target against the need to support a weakening economy.