South Africa: Rand Remains Under Pressure.

The South African rand was little changed around 17 per USD, hovering near the lowest since December 2025, as ongoing risk aversion persisted amid heightened Iran's war uncertainty while markets digested the South African Reserve Bank’s more hawkish stance. Policymakers noted that inflation was well-contained prior to the conflict, reaching the 3% target in February, but pressures from higher fuel prices and a weaker currency are expected to push it higher. Inflation forecasts were revised upward for both 2026 and 2027, while GDP growth projections remained unchanged. The central bank also updated its policy outlook, now expecting only one rate cut rather than two, and considered two Iran conflict scenarios, one lasting two months and the other one year, both pointing to higher interest rates.