The South African rand began 2025 with a positive showing on Thursday, rebounding from a volatile end to 2024. Trading at 18.7625 against the US dollar at 0803 GMT, the rand showed a 0.6% increase compared to its previous close.
Despite the positive opening, Andre Cilliers, a South African currency strategist at TreasuryONE, cautioned in a statement that the short-term outlook for the rand remains negative due to ongoing international factors and the strength of the US dollar.
Positive sentiment extended to the South African stock market, with the Top-40 index rising by approximately 1%.
The benchmark 2030 government bond also strengthened marginally, with yields falling by 1 basis point to 9.04%.