South Africa’s rand began the new year on a positive trajectory on Thursday following a volatile close to 2024.
As of 0803 GMT, the rand was trading at 18.7625 against the dollar, reflecting a 0.6% gain from its previous close.
Like many emerging market currencies, the rand experienced significant volatility in November and December, spurred by Donald Trump’s election as U.S. president. Concerns over his proposed tariffs, other policy uncertainties, and a more hawkish outlook from the Federal Reserve contributed to the turbulence.
“The short-term outlook for the local currency remains negative as international factors and the strength of the Dollar weigh,” Andre Cilliers, currency strategist at TreasuryONE, wrote in a note.
On the stock market, the Top-40 index (.JTOPI) recorded a gain of approximately 1%.
Meanwhile, South Africa’s benchmark 2030 government bond showed slight improvement, with the yield dropping by one basis point to 9.04%.
