JOHANNESBURG, Dec 15 (Reuters) – The South African rand strengthened on Monday, supported by higher gold prices as local investors look towards the year’s last pieces of economic data for clues on the health of Africa’s most industrialised economy.
At 1412 GMT the rand traded at 16.78 against the dollar , about 0.6% stronger than its previous close.
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Gold held near a more than seven-week high on Monday on a weaker dollar and lower U.S. yields. As a major producer of precious metals, South Africa often benefits from firmer bullion prices.
“Through the past week, the ZAR was able to capitalise on weaker USD sentiment. As the USD remained in a weaker trend, the ZAR was able to sustain the break below 16.90/dlr and open the door for even more ZAR appreciation,” ETM Analytics said in a research note.
“Technically speaking, the ZAR could now test levels in the 16.60s before the end of the year, which would play a significant role in reinforcing the virtuous cycle that has resulted in the ZAR appreciating as much as it has this year,” ETM Analytics said.
Domestically-focused traders examined the South African Reserve Bank’s quarterly bulletin, which showed that the country recorded foreign direct investment outflows of 21.0 billion rand ($1.25 billion) in the third quarter of 2025, down from outflows of 73.5 billion rand in the second quarter.
Later in the week, investors will look to November consumer inflation data (ZACPIY=ECI), opens new tab and producer inflation (ZAPPIY=ECI), opens new tab figures.On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI), opens new tab was last down 0.05%.
South Africa’s benchmark 2035 government bond was firmer, as the yield fell 5 basis points to 8.39%.
Reporting by Anathi Madubela; Editing by Ros Russell and Alex Richardson
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