South African (SA) Rand extended its advance in early trade on Wednesday, building on momentum after rebounding to firmer levels below the 16.00 per Dollar mark, while local markets awaited the release of a Purchasing Managers’ Index (PMI).

Rand traded at 15.9250 against the Dollar, about 0.3% stronger than its previous close.

“It looks like we have settled back into a pattern that we have generally seen in the last couple of months. Commodities edge up, which leads to all currencies moving up against the Dollar,” said Adam Phillips, Treasury Specialist at Umkhulu Treasury.

The Dollar was flat against a basket of currencies.

“In terms of the Rand, we often describe it as walking down a staircase backwards, with a slow appreciation,” said Phillips.

Like other risk-sensitive currencies, the Rand often takes cues from global drivers such as United States (US) policy in addition to local factors.

On Tuesday, US President Donald Trump signed a law that will extend a preferential trade program for Africa to December 31, effective retroactively from September 30, 2025.

However, there is uncertainty over whether SA will continue to benefit from preferential access amid strained ties with Washington.

Domestic traders will also look to the Standard & Poor’s Global December whole-economy PMI for clues on business conditions in the country.

SA’s benchmark 2035 government bond was firm in early deals, as the yield fell 5 basis points to 8.015%.

–Reuters–