South African rand continues to rise alongside the increasing gold price

South African rand made additional strides against the dollar on Tuesday, buoyed by gold prices hitting yet another record high.

The rising prices of precious metals, a key export for South Africa, have contributed to the rand reaching its highest value in over three years.

The currency is set to finish the year with an increase of over 12% against the dollar, supported by the nation’s enhanced fiscal performance and effective measures to control inflation.

At 0745 GMT, the rand was trading at 16.6875 against the dollar, reflecting an increase of approximately 0.1% from Monday’s close and marking its strongest position since August 2022.

Stocks listed in Johannesburg also saw an increase, with the Top-40 Index (.JTOPI) rising by 0.6%, building on the gains from the previous day.

Trade activity was lighter than normal, as numerous investors were absent from their desks due to year-end holidays.