The rand has remained resilient against the US dollar despite ongoing global uncertainty.
The rand has remained resilient against the US dollar despite ongoing global uncertainty, with analysts pointing to easing oil prices, stronger commodity prices, reduced expectations of further US interest rate hikes and easing Middle East tensions as the key drivers supporting the local currency.
The currency has traded around R16.20 to the dollar in recent days, strengthening from an average of R16.49 during the second quarter. Investec chief economist Annabel Bishop said the rand could test the R16.00 mark this week if positive momentum holds.
Nolan Wapenaar, head of fixed income at Anchor, said the rand's resilience was notable given the recent broad strength of the US dollar against other major currencies, with the euro currently trading around 4% weaker against the dollar than before the war.
Wapenaar attributed much of the rand's resilience to South Africa's improving terms of trade. "With oil prices coming down, our terms of trade are improving, giving more resilience to the rand," he said, adding that firmer gold, platinum and coal prices were also providing support.
