The rand strengthened on Monday, supported by higher gold prices as local investors look towards the year’s last pieces of economic data for clues on the health of Africa’s most industrialised economy. At 2.12pm GMT the rand traded at 16.78 against the dollar, about 0.6% stronger than its previous close. Gold held near a more than seven-week high on Monday on a weaker dollar and lower US yields.
As a major producer of precious metals, South Africa often benefits from firmer bullion prices. “Through the past week, the ZAR was able to capitalise on weaker USD sentiment. As the USD remained in a weaker trend, the ZAR was able to sustain the break below 16.90/dlr and open the door for even more ZAR appreciation,” ETM Analytics said in a research note.
“Technically speaking, the ZAR could now test levels in the 16.60s before the end of the year, which would play a significant role in reinforcing the virtuous cycle that has resulted in the ZAR appreciating as much as it has this year,” ETM Analytics said. Domestically focused traders examined the South African Reserve Bank’s quarterly bulletin, which showed that the country recorded foreign direct investment outflows of R21bn in the third quarter of 2025, down from outflows of R73.5bn in the second quarter. Later in the week, investors will look to November consumer inflation data and producer inflation figures.
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On the Johannesburg Stock Exchange, the Top-40 index was last down 0.05%. South Africa’s benchmark 2035 government bond was firmer, as the yield fell 5 basis points to 8.39%.
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