FX.co ★ South African Rand Remains Firm

The South African rand hovered around 17.2 against the US dollar, maintaining proximity to its highest level since September 2024, primarily buoyed by the upswing in gold prices. Concurrently, domestic investors evaluated the latest inflation statistics and their implications for the upcoming decision by the South African Reserve Bank on November 20. The inflation rate in South Africa accelerated to 3.6% in October, up from 3.4% in September, yet fell short of the anticipated 3.7%. Market sentiment anticipates that the central bank will resume its monetary easing path, with a 25-basis-point rate cut already factored in, following the recent formal adoption of a 3% inflation target by South Africa’s National Treasury in its medium-term budget. Finance Minister Enoch Godongwana stated that the new target 'will stabilize inflation at lower levels' and 'reduce the cost of living and borrowing.'