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The South African rand held firm in subdued year-end trading on Tuesday, maintaining its strong performance for 2025 as the U.S. dollar continued to weaken.
By 0747 GMT, the rand was trading at 16.6650 to the dollar, virtually unchanged from its previous close. The greenback, meanwhile, was hovering near its lowest level in three months.
South Africa’s risk-sensitive currency is on track to post gains of roughly 12% against the dollar this year, marking its strongest annual performance since 2009. The rally has been supported by improved fiscal discipline, progress in containing inflation, and rising global prices for precious metals such as gold and platinum — key South African exports.
The dollar has fallen about 9 per cent against a basket of major currencies in 2025, putting it on course for its weakest annual showing in eight years. The slide has been driven by expectations of U.S. Federal Reserve interest rate cuts, narrowing interest rate differentials, and growing concerns over the United States’ fiscal deficit and political uncertainty.
Investors are also watching for South Africa’s National Treasury to release November budget balance figures, data that could offer fresh insight into the financial health of Africa’s most industrialised economy.
On the Johannesburg Stock Exchange, the Top-40 index was last up 0.4 per cent. Government bonds also strengthened, with the benchmark 2035 bond seeing its yield fall by four basis points to 8.265% in early trading.
