South Africa\u2019s rand is undervalued at current levels, according to a survey of investors and economists, who see scope for further currency appreciation as the government\u2019s reform program boosts economic growth. <\/p>\n\n\n\n
On average, a Bloomberg survey of 14 respondents saw an exchange rate of R15.64 per dollar as fair value for the rand, with half of them seeing the currency as undervalued and three seeing it as close to fair value. Four said it was overvalued. <\/p>\n\n\n\n
Fair-value estimates ranged between R12.23 to R18.00 per dollar.<\/p>\n\n\n\n
The rand was trading at around R15.98 per dollar at 08h00 local time, paring a 2.6% selloff on Friday as prices of key South African exports,\u00a0gold<\/a>\u00a0and platinum, clawed back some losses.<\/span> <\/p>\n\n\n\n The currency is up about 3% so far this year, adding to gains of nearly 14% in 2025. The survey was conducted between 26-30 January.\u00a0<\/p>\n\n\n\n The findings of the Bloomberg poll broadly align with those of a Bank of America survey of fund managers conducted last month. <\/p>\n\n\n\n BofA found that respondents, on average, expected gains to extend to R15.60 per dollar over the next 12 months.\u00a0<\/p>\n\n\n\n The South African Reserve Bank, meanwhile, is less bullish, expecting the currency to weaken to R16.73 in the second quarter of 2026. It projects the exchange rate in a R16.54-R17.10 range through end-2028.<\/p>\n\n\n\n Optimism on the rand is underpinned by a mix of factors. While structural reforms and fiscal consolidation are helping contain inflation and borrowing costs, high metals prices and relatively low oil costs have sharply improved the country\u2019s terms of trade. <\/p>\n\n\n\n