The South African rand traded around 16.7 per USD, the highest since mid-August 2022, supported by higher prices of precious metals, particularly gold. Meanwhile, traders continued to assess domestic economic data. South Africa's inflation rate surprisingly softened to 3.5% in November from 3.6% in October, moving closer to the SARB's new 3% target and strengthening the case for a rate cut next month. The data follows a drop in short-term inflation expectations, a key guide for monetary policy, which fell to record lows in Q4 2025. The rand has gained over 10% against the dollar so far this year, amid improving fiscal and monetary policy credibility and a lower inflation target, which is expected to bolster economic growth. Increased investment in critical infrastructure and political stability are also supporting the positive outlook.