FX.co ★ South African Rand at Over 3-Year High

The South African rand was trading at approximately 16.4 per USD, marking its strongest position since August 2022. This upward trend can be attributed to the rising prices of precious metals and improved domestic economic indicators. In 2025, the rand experienced an impressive 14% annual increase, representing its most significant gain since 2009. This was driven by a weakened dollar, a surge in gold prices, and continuous economic reforms. The country's fiscal health, policy alignment, and the South African Reserve Bank's 3% inflation target have anchored market expectations, thus enhancing investor confidence in maintaining price stability. Concurrently, market participants are closely monitoring geopolitical developments, the Federal Reserve's autonomy, and the potential extension of the US trade preference program under the African Growth and Opportunity Act (AGOA).