South Africa remains vulnerable to further changes in global investor sentiment and it would be “rash” to assume weakness in the rand exchange rate is over, Deputy Governor Lesetja Kganyago said on Friday.

“It would be very rash indeed to assume that the rand’s long depreciation trend is now concluded and that henceforth a strengthening rand will mitigate inflation,” Kganyago said in a speech posted on the Reserve Bank’s website.

The rand hit five-year lows earlier in the year, helping to push inflation above the central bank’s 3% to 6% target band.