South African Rand Weakened Against Dollar
The South African rand weakened toward 18.1 per USD, after touching a five-month low of 17.75 on May 29, pressured by a firmer dollar and as prices of metal prices, particularly gold, declined.
Meanwhile, traders continued to digest the South African Reserve Bank’s decision.
The central bank resumed its easing cycle with a widely expected 25 basis point rate cut after pausing in March, aiming to support the economy amid subdued inflation.
Governor Lesetja Kganyago noted that underlying inflation remained well contained and that both domestic and global conditions had improved since the March meeting.
He also indicated the Bank’s preference for a 3% inflation target over the current 4.5% midpoint, which could limit the pace of future rate cuts. #South African Rand Weakened Against Dollar#
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