FX.co ★ South African Rand at 2022-Highs

The South African rand has continued to appreciate, reaching 16 to the US dollar, marking its highest point since June 2022. This strengthening is attributed to unprecedented prices for major exports such as gold, silver, platinum, and palladium. Since the beginning of 2026, the rand has increased by over 3% against the US dollar, building on the robust gains observed in 2025. This upward trend is supported by enduring concerns regarding the US economy under President Trump and favorable developments within South Africa. Additionally, the South African Reserve Bank is scheduled to announce its first monetary policy decision of the year on Thursday, January 29, a day after the US Federal Reserve meeting, which is largely anticipated to maintain interest rates at their current levels. Market expectations suggest that the South African Reserve Bank will also hold rates steady following a rate cut in November 2025, though a further reduction may be considered in March depending on inflation data. According to a Reuters survey, 18 out of 26 analysts predict stable rates, while eight foresee a 25 basis point decrease to 6.5%. The inflation rate slightly increased to 3.6% in December 2025 from 3.5% in November, which remains above the SARB's newly established target of 3%.