South African Rand Slightly Eases Ahead of July Inflation Data

Johannesburg, 20 August 2025 – The South African rand dipped slightly on Wednesday. It traded at 17.71 per US dollar by 06:06 GMT. This is a 0.1% drop from Tuesday’s close. Investors are waiting for domestic inflation figures expected later this morning.

Domestic inflation is projected to reach 3.5% in July, up from 3.0% in June. This shift could have a big impact on the South African Reserve Bank’s choices in September. Ahead of the data, bond yields hardly changed. The yield on the 2035 government bond held steady at about 9.655%.

Global developments added to caution in local markets. Traders watched for signals from the U.S. Federal Reserve’s Jackson Hole symposium. Earlier in the week, gold’s rally helped the rand. On Monday, it rose 0.5% to 17.5250 per dollar due to higher bullion prices. However, the currency retraced those gains on Tuesday, slipping 0.2% to 17.6550 as the dollar firmed.

Analysts warn that if domestic inflation surprises on the upside, it could hurt the rand and raise local bond yields. On the other hand, a softer inflation reading might bring relief and boost hopes for looser monetary policy. Investors will keep a close eye on the inflation release at 08:00 GMT. They want insights into the direction of South Africa’s economy.