The South African rand extended its rally toward 16.4 per USD, the highest level since early August 2022, benefiting from a surge in gold prices after the US military action in Venezuela escalated geopolitical tensions. The United States captured Venezuelan President Nicolas Maduro over the weekend on drug-trafficking charges, with President Donald Trump saying Venezuela would be placed under temporary US control, although remains unclear how this would be implemented. Traders also weighed the potential for similar interventions threatened by President Trump in Colombia, Mexico, Cuba, Iran, and Greenland. Last year, the South African rand gained more than 10% against the US dollar, ranking among the best-performing emerging-market currencies, driven by dollar weakness, improved state finances, a lower inflation target, and high commodity prices.