JOHANNESBURG, Dec 24 – The South African rand edged higher against the U.S. dollar on Wednesday, extending gains for the week as investors continued to pile into precious metals.
By 0755 GMT, the rand was trading 0.1% stronger than Tuesday’s close at 16.6625 to the dollar. Johannesburg-listed equities also advanced, with the Top-40 Index rising 0.8% during morning trade.
Analysts said the currency’s performance reflects favorable external conditions and strong commodity prices. ETM Analytics noted that a softer dollar and rising metals prices are helping to keep South Africa’s trade balance in surplus territory, providing support for the rand.
The currency is on track to end 2025 with gains of more than 12% against the dollar. The rally has been underpinned by improved fiscal performance, easing inflation pressures, and a surge in prices for precious metals such as gold and platinum, which are among South Africa’s key exports.
Market activity has been lighter than usual, with many global investors away for end-of-year holidays, though commodity-driven currencies have continued to attract inflows amid ongoing metals market volatility.
