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South Africa’s Rand finished 2025 with a substantial rise against the United States dollar, gaining close to 13 % and recording its best yearly performance in more than a decade.
The rand rose for the first time against the dollar since 2019 and posted its strongest annual increase since 2009.
Analysts said the gains were supported by South Africa’s improved government finances, better control of inflation, and a strong rise in precious-metal prices.
Gold and platinum, two of South Africa’s main exports, performed well during the year, helping to support the local currency. At the same time, the US dollar fell about 9% against a basket of major currencies, its worst annual showing in eight years.
The weaker dollar was linked to expectations that the Federal Reserve would cut interest rates, as well as concerns over the US budget deficit and political uncertainty.
Demand for safe-haven assets increased, pushing gold above a record $4,000 an ounce in October and putting it on track for its strongest yearly gain in more than 40 years.
Analysts said South African assets benefited from higher commodity prices but did not fully take advantage of the global commodity boom.
The year was also the first full year under South Africa’s coalition government. It was marked by disputes over the national budget and concerns about US tariffs imposed by President Donald Trump.
Despite these challenges, South African assets remained resilient. Investor confidence improved after the country was removed from the global financial crime watchdog’s grey list, received a credit-rating upgrade from Standard & Poor’s, and adjusted its inflation target.
The same factors that helped the rand in 2025 are likely to help it in 2026, according to Johann Els, Chief Economist at PSG Financial Services.
