The Rand has strengthened to R17.78 per U.S. dollar and is at its strongest level since mid-July due to a weakened dollar and the increased likelihood of an interest rate cut in September. Local economists expect a 25 basis point cut in September and again in November, with inflation at its lowest in the past six months. Local investors are also optimistic about the economic outlook under the new coalition government, which could lead to swift reforms, medium-term growth, and a reduction in unemployment.

The Brent crude oil price is currently trading lower at $78.92 per barrel. The price decline can be attributed to lower demand from China, the largest consumer. Recent economic data showed that China’s economy is starting to grow more slowly, leading to a decrease in their oil processing. There is also still the risk of reduced oil supply from the Middle East if the war escalates further.