FX.co ★ South African Rand Recovers Further Ground

The South African rand has gained momentum, appreciating to approximately 16 per USD, propelled by the resurgence in precious metal prices, notably gold and platinum—South Africa’s primary export commodities. The recent nomination of Kevin Warsh by President Trump to replace Jerome Powell as the Federal Reserve Chair has triggered a swift selloff in precious metals. This reaction is attributed to traders rapidly adjusting their positions amidst uncertainties surrounding the future direction of US monetary policy. To date, the currency has appreciated by about 3% this year, building on an approximate 12% increase in 2025. This performance has been underpinned by strong commodity prices and an array of supportive factors, including structural reforms, fiscal consolidation, credible monetary policy, and a stable governing coalition.