South African Rand depreciated against USD last week, slipping by 1.2% to 18.40. A larger than expected drop in inflation caused the Rand to give up some of its recent gains against a stronger Dollar. South Africa heads into its elections this week, where polls suggest the ruling African National Congress could lose its legislative majority for the first times since coming to power 30 years ago. This uncertainty will likely cause short term volatility in the Rand until the political environment is settled.