Whether USDZAR can sustain a move below R16 is likely dependent on if there is a continued flare up in the Middle East.
The rand remained below the psychologically important R16 level on Monday, holding onto gains despite renewed Middle East tensions, surging oil prices and expectations that inflation will again come under pressure.
The currency, which first broke below R16 last Thursday, was trading at around R15.98 by midday on Monday.
Trading Economics said the rand was hovering near its strongest level since the Iran war began in late February, with expectations that the South African Reserve Bank (SARB) could increase interest rates later this month providing some support.
The strength comes despite an oil shock that has already fed through to South African motorists, with sharply higher fuel prices adding to inflationary pressure. Brent crude was up 0.64% this afternoon at $96.92.
