The South African rand is on a roll, reaching a record high against the US dollar. This happened after the US released good news about inflation. The exchange rate between the two currencies fell to its lowest point since January 2nd this year, dropping by 5.57% from its highest point this year.

The US inflation report showed that prices are rising at a slower rate than before. The Consumer Price Index, which measures inflation, went down from 0.4% to 0.3%. This is good news because it means the US Federal Reserve might lower interest rates soon.

The US economy is still struggling, though. Retail sales, which measure how much people are buying, went down from 0.6% to 0.0% in April. The US dollar also dropped in value compared to other currencies, especially in Asia.

In South Africa, gold and mining production went down by 4.5% and 5.8% respectively. Unemployment is still high at 32.90%, but retail sales went up a little in April. These numbers came out just before the important general election.

Overall, the outlook for the US dollar and South African rand exchange rate is not good, with the next point to watch being at 18.10, its lowest swing in November last year.