South African rand set for third weekly loss as investors eye rate decision next week
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The South African rand fell sharply on Friday, heading for a third straight weekly loss as investors looked ahead to next week’s interest rate decision by the South African Reserve Bank. At 1454 GMT, the currency traded at 17.05 to the dollar, down 1.7% from Thursday’s close and near its weakest level since early December 2025.
Analysts said the rand remained under pressure because rising oil prices were hurting risk appetite and adding to inflation concerns in net energy-importing South Africa. ETM Analytics said oil had become a barometer for risk sentiment, with higher prices typically weighing on emerging-market currencies.
The rand had already lost more than 3% in the week before last and more than 2% last week, and it was on track to fall about 1% this week. The dollar, meanwhile, strengthened more than 2% so far this month as investors continued to favour safe-haven assets.
Attention now turns to the central bank’s rate decision on Thursday next week. Economists polled by Reuters expect the policy rate to remain unchanged at 6.75%, while the bank’s governor has said the Reserve Bank will revise its risk scenarios as the Middle East conflict keeps oil prices elevated.
Other data due next week include South Africa’s composite leading business cycle indicator on Tuesday and producer inflation on Thursday. The Johannesburg Stock Exchange’s Top-40 index was down 0.4%, while the benchmark 2035 government bond weakened sharply, with the yield rising 17 basis points to 9.22%.
