The rand held near R16.54 to the US dollar on Monday, close to where it ended its first weekly gain in five weeks. Rates calculated from the European Central Bank’s (ECB) euro reference rates put the dollar at R16.54 on Monday and R16.53 on Friday. The Reserve Bank’s rate, a weighted average of banks’ quotes at about 10:30 SAST, was also R16.54 on Monday.
Last week’s gain ended a run of four weekly losses. On the ECB-based rate, the dollar fell from R16.73 on 2 October to R16.53 on Friday, a rand gain of about 1.2%. On the Reserve Bank’s 10:30 rate the gain was 0.7%. Over the four losing weeks the dollar climbed from R15.97 on 4 September to R16.73 on 2 October.
Reuters, in a report carried by CNBC Africa on Friday, linked the recovery partly to firmer gold prices. The London gold price averaged US$4,186.60 an ounce at Friday’s fixings, up from US$4,122.45 on Thursday, Reserve Bank data show.
US consumer price figures for September are due on Wednesday at 14:30 SAST, the US Bureau of Labor Statistics schedule shows. The Federal Reserve raised its federal funds target range by 25 basis points to 3.75% to 4% on 16 September and next meets on 27 and 28 October.
Government bonds also gained ground. The yield on the R209, which matures in 2036, closed at 8.94% on Friday, down from 8.99% on Thursday and 9.03% on 5 October, Reserve Bank figures show. That is still above 8.445% on 7 August, its lowest close since the start of August.
Source: Rand per US dollar calculated by Frankfurter from European Central Bank euro reference rates (rand per euro divided by US dollars per euro). Chart: Rand Desk
The Reserve Bank’s October 2026 Monetary Policy Review said the rand had been “one of the better-performing emerging market currencies”, which helped hold back imported inflation. It also said a sharp rise in the dollar, or higher rates in advanced economies, could pull capital out of emerging markets, weaken the rand and lead firms to lift prices. For South Africa, US monetary policy matters “mainly through its effect on the rand exchange rate”, the review said.
Finance Minister Enoch Godongwana will deliver the Medium-Term Budget Policy Statement in the National Assembly on 21 October, Parliament said. Our preview of the statement sets out the latest figures on revenue, spending and debt costs. Daily moves in the currency are tracked on our Markets and Rand page.
The Reserve Bank’s Monetary Policy Committee raised the policy rate by a combined 50 basis points to 7.25% between April and October. It announces its next decision on 19 November.
