South African Rand at Near 3-Year High

The South African rand has strengthened in recent days, trading around 16.9 per USD, a new milestone since January 2023, on the back of positive domestic developments.

South Africa’s first dollar-denominated eurobond issuance since 2024 raised $3.5 billion and attracted nearly four times that in orders, the latest signal of the country’s growing appeal to global investors.

The robust demand reflects ongoing investor confidence in South Africa’s fiscal discipline, economic fundamentals, and growth trajectory.

The South African Rand touched 16.93 against the USD, the highest since February 2023.

Over the past 4 weeks, US Dollar South African Rand lost 2.44%, and in the last 12 months, it decreased 6.08%.

The South African rand traded around 17.1 per USD, close to the highest since mid-November, amid a broadly stable dollar and positive domestic GDP data.

South Africa’s economy rose 0.5% on quarter in Q3 2025, achieving its fourth straight quarter of expansion, with growth in nine of ten industries pointing to a broadly based recovery.

This was despite signs of persistent external challenges.

The rand continues to draw support from monetary easing, improving fiscal indicators, and a clearer inflation-targeting framework, all of which strengthen the country’s economic outlook.

The South African rand was slightly higher around 17.3 per USD, amid a broadly stable dollar and improving domestic economic fundamentals.

The South African Reserve Bank cut its benchmark rate by 25 bps to 6.75% on November 21 and trimmed inflation forecasts for the next two years, after the National Treasury adopted a 3% inflation target, replacing the 3%-6% range used for 25 years.

Additionally, the mid-term budget update signaled lower borrowing and restrained spending to bring government debt under control.

The South African rand was little changed around 17.2 per USD, after the South African Reserve Bank resumed policy easing by cutting its key repo rate to 6.75%.

The meeting is the first since South Africa’s National Treasury, in last week’s medium-term budget policy statement, formally adopted the central bank’s 3% inflation target with a tolerance band of 1 percentage point on either side.

The South African rand shows little reaction after the country's central bank voted unanimously to cut its main repo rate by 25 basis points to 6.75%, as expected. South African Reserve Bank Governor Lesetja Kganyago said the central bank remains on track to reach the 3% inflation target over the medium term. The inflation target was recently revised from a previous range of 3%-6%. Data Wednesday showed inflation rose to 3.6% in October from 3.4% in September. The dollar trades at 17.2326 rand after the decision, little changed from beforehand. (renae.dyer@wsj.com)