FX.co ★ South African Rand Firms

The South African rand saw a modest increase, hovering around 17.3 per USD. This performance occurred against the backdrop of a largely stable dollar and strengthening domestic economic indicators. Notably, the South African Reserve Bank reduced its key interest rate by 25 basis points to 6.75% on November 21. This move came in response to revised inflation forecasts for the upcoming two years, following the National Treasury's shift to a 3% inflation target, replacing the long-standing 3%-6% range maintained over the past 25 years. Furthermore, the mid-term budget update indicated an intention to reduce borrowing and maintain disciplined spending to manage government debt effectively.