JOHANNESBURG, Jan 23 (Reuters) – The South African rand slipped on Friday but hovered near the 16-per-dollar level as traders looked ahead to next week’s interest rate decision for signals on the central bank’s policy stance.
At 1449 GMT, the rand traded at 16.1825 per dollar , roughly down 0.3% on Thursday’s close but still near its strongest level since June 2022.
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The currency has been supported by record-high gold prices, improved fiscal indicators, a credible central bank and sustained dollar weakness, said Citadel Global director Bianca Botes in a note.
The risk-sensitive rand, which often tracks major global drivers such as U.S. policy, has gained more than 2% against the dollar since the start of 2026.
“A test of 16.00 per dollar appears plausible, should gold hold above $4,800 an ounce and dollar weakness persist,” Botes said.
The dollar was last flat against a basket of currencies, while gold inched toward another record high of $5,000 an ounce, supported by geopolitical uncertainty.
Botes cautioned that South Africa’s weak growth outlook, uncertainty over its continued inclusion in the African Growth and Opportunity Act, reliance on a potentially overvalued gold price and the rand’s inherent volatility all suggest the currency’s recent gains may prove fragile.
The South African Reserve Bank will deliver its monetary policy decision next week, after cutting its main lending rate by 25 basis points in November.
On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI), opens new tab was up 0.7%.
South Africa’s benchmark 2035 government bond firmed, with the yield falling 9 basis points to 8.165%.
Reporting by Anathi Madubela, Kopano Gumbi and Sfundo Parakozov;
Editing by Ronojoy Mazumdar and Vijay Kishore
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