![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/02\/Rand-most-overvalued.jpg\")
<\/a><\/figure>\n\n\n\nTraders are also worried about who replaces President Cyril Ramaphosa as head of the ruling African National Congress when his term ends next year, and how that will affect the government. <\/p>\n\n\n\n
The country has seen months of political stability, which has boosted investor confidence.<\/p>\n\n\n\n
\u201cForeign investors and capital flows would be likely to react negatively to domestic political uncertainty that might imply threats to the current coalition government or risks of a material shift in economic policies,\u201d said Andrew Matheny, an economist at Goldman Sachs Group Inc.\u00a0<\/p>\n\n\n\n
Many investors remain bullish on the rand, expecting the budget to deliver on investors\u2019 expectations, including a possible reduction in local-currency bond issuance.<\/p>\n\n\n\n
A survey of South African fund managers by Bank of America in the second week of February found respondents see the rand gaining to R15.47 per dollar over the next 12 months. <\/p>\n\n\n\n
The currency traded around R15.99 per dollar on Monday.<\/p>\n\n\n\n
\u201cIt is hard to adopt an outright bearish view on the currency given South Africa\u2019s strong terms of trade,\u201d said Walter de Wet, an analyst at Nedbank Group Ltd., adding that any currency weakness should be seen \u201cas an opportunity to lock in those attractive levels.\u201d<\/p>\n\n\n\n
Still, the rand has come a long way, leaving it vulnerable to a correction.<\/p>\n\n\n\n
\u201cThe rand is coming off a year of strong gains, with the move large enough to have eroded the currency\u2019s notable undervaluation,\u201d said Lauren van Biljon, a senior portfolio manager at Allspring Global Investments. <\/p>\n\n\n\n