South Africa’s rand opened the new year on a stronger footing, recovering from a turbulent close to 2024. As of 0803 GMT Thursday, the rand was trading at 18.7625 against the U.S. dollar, up by 0.6% compared to its previous close.
The rand, like many emerging market currencies, was severely affected by volatility in late 2024, primarily due to the uncertainty surrounding the U.S. political landscape following Donald Trump’s election as president. Market participants were unsettled by his proposed tariffs and other economic policies, coupled with a more hawkish outlook from the U.S. Federal Reserve, which contributed to significant fluctuations in the rand’s value.
Despite the rand’s positive start in 2025, Andre Cilliers, currency strategist at TreasuryONE, cautioned that the short-term outlook remains challenging. “The strength of the U.S. dollar and ongoing international economic pressures continue to weigh heavily on the rand,” Cilliers noted in a statement.
On the Johannesburg Stock Exchange, the Top-40 index rose by approximately 1%, reflecting a modest improvement in market sentiment. Meanwhile, South Africa’s benchmark 2030 government bond saw slight strengthening, with its yield dipping 1 basis point to 9.04%.
As global markets begin the new year, South Africa’s currency and bond markets will continue to face external headwinds, but the initial signs are positive as traders and investors navigate a complex global economic environment.