Rand leaves others in dust

Over the past year, only two of the 16 key currencies monitored by Currencies Direct have proven to be more resilient against a resurgent US dollar than the South African rand.

- Roelof Botha

Between 29 February last year and 24 February this year, the rand has strengthened by 4.6% against the world's dominant currency, with only the Malaysian ringgit managing a better performance.

South Africa's currency has left the euro, the British pound and all currencies of other Brics nations floundering.

The US dollar's bull run towards the end of last year was caused mainly by expectations of higher economic growth, following the Republican Party's victory in the presidential election.

President Donald Trump has promised to follow a growth-enhancing macroeconomic policy approach, which is likely to include tax reductions and has already led to increased tariffs on imports, especially on neighbouring countries and China.

A stronger US economy may slow down the declining trend of inflation, which could limit the extent and regularity of further interest rate cuts by the Federal Reserve.