The rand has surged to its firmest point in almost three years, slipping below R17 to the US dollar a threshold last breached in November and previously not seen since January 2023.
Analysts say the currency’s momentum could continue, with some forecasting a possible strengthening toward R16.50 in the coming days.
The latest rally marks a sharp rebound from April, when the rand hovered perilously close to R20 to the dollar following former US President Donald Trump’s announcement of new tariffs.
While South Africa has seen modest improvements in domestic economic indicators, economists largely attribute the rand’s current upswing to sustained weakness in the US dollar.
For consumers and businesses alike, a stronger rand means fewer local currency units are required to purchase one US dollar offering a welcome reprieve as the festive season approaches.