The currency ended 2025 nearly 13% stronger against the United States Dollar, marking its biggest annual gain in 16 years. At 09h39 CAT, the Rand stood at 16.5425 against the Dollar, little changed from its previous close.
An ETM Analytics research note said that the muted session will give investors time to reflect on major themes likely to unfold through 2026 and influence the broader direction of the rand and other emerging market currencies. SA’s benchmark 2035 government bond was little changed, with the yield up half a basis point at 8.215%.
In addition to global factors, domestic investors this year will be watching for progress on reforms to strengthen the country’s logistics and energy sectors. Weakness in those sectors has dented growth in Africa’s most industrialised economy.
ETM Analytics said the greater the progress, the more likely SA is to attract capital flows into its bond market, which is one of the most powerful determinants of how the rand will perform.
“It is essential to generate capital inflows into bonds if SA is to foster a virtuous cycle that has the potential to extend well beyond 2025 and sustain those gains through 2026.”
–Reuters–
