South African Rand Firms

2025-11-10 16:22 By Luisa Carvalho 1 min. read

The South African rand strengthened to around 17.2 per USD, its highest level since October 28, supported by higher prices of gold, amid expectations of Federal Reserve rate cuts.

At the same time, risk sentiment improved on optimism over efforts to end the longest US government shutdown.

Domestically, attention is on South Africa’s mid-year budget statement due on November 12, where Finance Minister Enoch Godongwana is expected to signal a slightly improved fiscal outlook, although growth projections may be revised downward.

He is also anticipated to confirm the adoption of a lower inflation anchor of 3%, replacing the current 4.5% midpoint of the South African Reserve Bank’s 3%-6% target band.

In July, the central bank indicated a preference for inflation to track the lower end of the range rather than the midpoint.

Governor Lesetja Kganyago has long argued that the measure reinforces monetary policy credibility by anchoring inflation expectations and helping contain price growth.



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