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The South African rand extended its gains in early trade on Wednesday, February 4, 2026, firming below the 16.00-per-dollar level as investors awaited the release of a purchasing managers’ index (PMI).
By morning, the rand was trading at 15.9250 to the dollar, around 0.3 per cent stronger than its previous close.
Commenting on this, Umkhulu Treasury’s treasury specialist Adam Phillips said the currency appeared to be returning to a familiar trend seen in recent months, with rising commodity prices lending support to market currencies.
Phillips noted that the rand has been appreciating gradually, often characterised by slow but steady gains.
“It looks like we have settled back into a pattern that we have generally seen in the last couple of months. Commodities edge up, which leads to all currencies moving up against the USD.
“In terms of the ZAR, we often describe it as walking down a staircase backwards, with a slow appreciation.”
The dollar was largely flat against a basket of major currencies, providing additional support for the rand.
As a risk-sensitive currency, the rand continues to take cues from global developments, including US economic and trade policy, as well as domestic factors.
Market sentiment was also influenced by news from the United States, where President Donald Trump signed legislation on Tuesday extending a preferential trade programme for African countries through December 31, with retroactive effect from September 30, 2025.
However, uncertainty remains over whether South Africa will continue to benefit from the arrangement due to strained relations with Washington.
