South African Rand Steady Versus Dollar as FX Reserves Climb
The South African Rand was steady versus the US dollar amidst reports of a surge in the country’s foreign reserves. ZARUSD pair traded at 17.37 per dollar on Friday in the forex market, little changed from its previous close of 17.3750/USD.
The currency has been spurred by higher metal prices, including gold, as global investors continue to seek safe-haven investment options, while anticipated slowdown in US Fed rate cuts boosts sentiment.
SA Rand experienced early rally, then selloffs before it stabilised against the greenback while the country seeks to reverse high tariffs on exported goods with the United States.
Latest update showed that South African’s gross foreign exchange reserves rose to a record high of $71.55 billion in October 2025 from $69.74 billion in the previous month.
In contrast, SDR holdings however declined while the forward position, representing the central bank’s unsettled or swap transactions, fell significantly to $0.602 billion in October from $1.178 billion in the preceding period.
The rand continues to move around R17.38 with US Fed end to quantitative tightening. In particular, the Federal Open Market “Committee decided to conclude the reduction of its aggregate securities holdings on December 1”st , as the Fed will no longer seek to shrink its balance sheet, which has been restrictive.
“In December we will enter the next phase of our normalisation plan business, holding the size of our balance sheet steady for a time, while reserve balances continue to move gradually lower as other non-reserve liabilities, such as currency, keep growing.”
US interest rate cuts tend to weaken the US dollar and strengthen the rand and other emerging market currencies, but uncertainty has risen too, with the FOMC seen in a wait-and-see stance now, ahead of further US data releases. Julius Berger Jumps by 13.3% as Investors Bet on Earnings
