South Africa's rand hits 16 per dollar for first time since 2022
The South African rand hit its strongest level against the dollar in three-and-a-half years on Monday, boosted by record precious metal prices and optimism about the country's economic outlook.
The rand struck 16 per dollar for the first time since June 2022 and was trading at 16.0050 at 0938 GMT.
The global gold price surged to a record high above $5,100 an ounce as central banks and investors sought refuge from geopolitical risks and market volatility.
Gold is a major South African export, and its record-setting rally helped the rand gain about 14% against the dollar last year and more than 3% so far this year.
The South African economy has grown sluggishly for years, but last year investors turned more optimistic about the outlook thanks to a government reform drive and signs that the fiscal picture is improving.
The Johannesburg Stock Exchange's Top-40 index was up 1.1% on Monday, with AngloGold Ashanti and Gold Fields both up over 4%, among the biggest risers on the day.
The benchmark 2035 government bond also gained, as the yield fell 5.5 basis points to 8.09%.
Investors' focus will soon shift to the South African Reserve Bank's first interest rate announcement of 2026 on Thursday, which could be a close call.
Eighteen of 26 analysts polled by Reuters expect the central bank to leave its repo rate unchanged, but eight predict a 25-basis point rate cut to 6.50%.
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