JOHANNESBURG, Jan 26 – South Africa’s rand strengthened past 16 per dollar for the first time since mid-2022, extending a rally driven by improving global risk appetite and a weaker U.S. currency amid record gold prices.
The rand gained 0.8% to trade at 15.9982 per dollar by 10:36 a.m. in Johannesburg on Monday, marking its strongest level since June 2022.
The risk-sensitive currency, which often tracks global market dynamics such as U.S. monetary policy and commodity prices, has gained about 3% against the dollar since the start of 2026.
Investor focus is now turning to the South African Reserve Bank’s first interest rate decision of the year, scheduled for Thursday. Markets are watching closely for signals on the central bank’s policy direction as inflation pressures ease.
The SARB cut its benchmark lending rate by 25 basis points in November, noting there was room to make monetary policy less restrictive in light of an improving inflation outlook.
