The South African rand continued its remarkable rally against the US dollar on Thursday, 25 January. At one point the US dollar was trading for R11.88 – it was trading at 11.89 at the time of this report.
The last time the South African currency traded at figures between 11.88 and 11.89 to the greenback was the week of 4 May 2015.
South Africa operates a flexible exchange rate regime, which means it is susceptible to market fluctuations.
The rand is also, according to experts, overtraded and is the subject of considerable foreign exchange speculation, and therefore unpredictability – mainly fueled by daily political developments and public policy shifts.
It is the 18th most-traded currency worldwide, but accounts for 1.1% of worlds daily currency trading. Most daily trades of the South African rand happen outside of the country.