South Africa’s rand softened against the dollar on Monday, retreating from a fresh 20-month high it hit earlier in the session. At 0820 GMT, the rand traded at 17.455 against the greenback ZAR=D3, 0.27% weaker than its previous close.

The South African rand softened on Friday, cooling off after strong gains in a week that saw interest rate cuts by both the U.S. Federal Reserve and the South African Reserve Bank, plus a local inflation print.

The rand gained Thursday morning ahead of a South African Reserve Bank interest rate decision, where the central bank is expected to deliver its first cut since July 2020.

The South African rand surged to its highest point since July after the Federal Reserve started cutting interest rates and as the country’s central bank prepares for its cut. The USD/ZAR exchange rate dropped to a low of 17.

The South African rand firmed to a near 14-month high on Wednesday ahead of an expected U.S. Federal Reserve interest rate cut and after the local inflation rate fell more than expected.