The rand is currently trading at its strongest level against the dollar in three years, as easing geopolitical tensions and safe-haven demand contribute to its strength.
The rand was trading at 16.21 against the dollar, approximately 0.3% stronger than Wednesday’s close and at its highest level since August 2022.
Earlier in the week, escalating tensions between US President Donald Trump and European countries drove gold prices to new highs.
This pushed the rand to a 3.5-year peak of around 16.29 per dollar, according to a note from Umkhulu Treasury.
Like other risk-sensitive currencies, the rand often takes cues from global developments, including US policy, and has appreciated roughly 2% against the dollar since the start of 2026.
The U.S. dollar has weakened by 0.2% against a basket of currencies. Analysts have stated, “The ongoing rotation out of US assets into gold will ensure that the USD is hamstrung, while commodity currencies like the rand will perform well.”
On the Johannesburg Stock Exchange, the Top-40 index has risen by 0.8%, aligning with trends seen in most emerging market equities, which are trading at record highs on Thursday.
As of Friday, January 23, the rand is trading at R16.10 to the dollar, R21.74 to the pound, and R18.92 to the euro. Gold is currently valued at $4,957.84 per ounce, while oil prices have increased to $64.58 per barrel.
5 important things happening in South Africa today
Game closing stores: Massmart-owned Game has closed at least 13 stores in South Africa since late 2022, and its first two Walmart stores in the country were placed at former Game sites, with more likely to follow. [MyBroadband]
Investec CEO warns the government: Investec’s CEO noted that investor sentiment towards South Africa at this year’s World Economic Forum in Davos is generally positive. However, he warned that there is a need to urgently address perceptions of the country being anti-American. Titi highlighted a sense of credibility and clarity regarding the reform agenda. [News24]
COSATU slams salary hikes for ministers: The Congress of South African Trade Unions (COSATU) has criticised what it sees as an excessive salary increase for politicians and the judiciary. However, it does support the pay raise for magistrates. President Cyril Ramaphosa has approved a 3.8% salary increase for his executive team and parliament members, and a 4.1% increase for the judiciary. [EWN]
Interest rate expectations: Nedbank’s projection runs counter to most economists’ forecasts, which expect the SARB to front-load interest rate cuts in the first half of the year. Some economists and analysts, such as Aluma Capital’s Frederick Mitchell and PSG Wealth CIO Adriaan Pask, believe there is room for interest rate cuts immediately, ie, in the January meeting. [BusinessTech]
Massive pay bump for Secretary to Parliament: TTensions are high at the Randgate Community Hall in Kagiso, where around 500 residents from the Sporong informal settlement have sought shelter. This incident is part of a larger issue of illegal mining in Gauteng and other provinces, resulting in community conflicts and displacement. [Newsday]
