After breaching R16/ for the first time since July 2022 yesterday, the rand is entering territory that analysts say could open the door to further strengthening towards R15.50, supported by buoyant commodity prices, bond inflows and improvements in SAs fiscal and credit outlook linked to recent reforms.
Rand Swiss senior analyst Shaun Murison said gains in the rand would be supported by carry-trade opportunities, strong demand for local bonds, rising prices for gold, copper and platinum, a risk-on global environment and continued dollar weakness.
The rands momentum is reinforced by a surge in precious metal prices, which boost export earnings and strengthen SAs terms of trade. Gold has powered to record pries above 5,100/oz, while platinum and copper have also advanced, lifting foreign-exchange inflows and supporting mining-sector revenues.
