The South African rand continued its remarkable ascent against the US dollar on Wednesday, breaching the R15.80/$ level.
The local currency is now stronger against the dollar than it was in January 2016 – 10 years ago – though its performance against other major currencies, including the British pound and the euro, has been more muted.
The currency briefly traded stronger than the R15.80/$ level on Wednesday morning and was last quoted at R15.83 at 9.36am SAST.
The strong performance against the dollar should help drive down inflation, especially in imported goods, including software, computers, smartphones, IT equipment and general consumer electronics.
Gold, a major South African export, broke through $5 200 for the first time on Wednesday, as the dollar plunged to a near four-year low amid persisting geopolitical concerns and ahead of a US Federal Reserve monetary policy decision later in the day.
Wichard Cilliers, head of market risk at TreasuryOne, said markets expect the Fed to keep rates on hold and will be watching for clues on the pace and timing of future cuts.
The rand, like other risk-sensitive currencies, often takes cues from global drivers such as US policy.
More upside
Investors’ focus will pivot to South Africa’s first interest rate announcement of 2026 on Thursday, where 18 of 26 analysts polled by Reuters expected the central bank to leave its repo rate unchanged, and eight predicted a 25 basis point rate cut to 6.5%.
Other domestic releases this week include producer inflation numbers on Thursday, while money supply, private sector credit, trade balance and budget balance figures are all due on Friday.
Read: The top-performing South African tech shares of 2025
“The rand is well-positioned to appreciate further for now, especially against the dollar,” ETM Analytics said in a research note, adding that a firmer currency could ease pressure on importers, help curb inflation and create room for lower interest rates to support a broader credit recovery. — Sfundo Parakozov, © 2026 Reuters, with additional reporting © 2026 NewsCentral Media
Get breaking news from TechCentral on WhatsApp. Sign up here.