South African Rand at 2022-Highs

2026-01-29 13:59 By Luisa Carvalho 1 min. read

The South African rand edge up to around 15.7 per USD, the highest since May 2022, as investors digested the Reserve Bank’s latest monetary policy action.

The central bank maintained the benchmark interest rate at 6.75%, pausing after a 25bps rate cut in November, as widely anticipated by analysts.

The decision followed a downward revision to the 2026 inflation forecast, now 3.3%, closer to the new 3% target amid an improved inflation outlook.

Notably, the central bank believes that local inflation peaked in December at 3.6%, with the expectation that it will now continue to fall, though domestic price pressures and geopolitical risks remain a concern.

The currency has appreciated nearly 5% against the dollar since the start of 2026, building on strong gains from 2025, helped the the dollar's relative weakness, surging prices of precious metals and improving domestic fundamentals.



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