The South African rand extended its recent gains against the U.S. dollar on Thursday as investors awaited the country’s first interest rate decision of the year from the South African Reserve Bank.
By 0724 GMT, the rand was trading at 15.7050 to the dollar, around 0.5 percent stronger than Wednesday’s close and near its strongest level in approximately three and a half years. The currency has been supported by a softer dollar globally and improving sentiment toward emerging market assets.
Traders are closely watching the Reserve Bank’s policy statement for signals on its outlook for inflation, economic growth, and future interest rate moves. While inflation pressures have shown signs of easing, South Africa continues to face structural challenges including weak growth, power supply constraints, and logistical disruptions.
Analysts say the rand’s resilience also reflects continued foreign interest in high yielding South African assets, though they caution that volatility could return depending on the central bank’s tone and broader global market developments.
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