In the early hours of Tuesday, the South African rand remained steady, benefiting from a positive risk outlook, while the dollar lingered near its lowest point in three months.
As of 0703 GMT, the rand was at 18.6650 against the dollar, maintaining its proximity to the previous day's closing value.
The dollar index, tracking against major currencies, was at 103.25 and set for a November loss exceeding 3%, marking its weakest performance in a year. Similar to other currencies in emerging markets, the rand's direction is influenced by global factors such as U.S. monetary policy, dollar fluctuations, and local economic indicators.
TreasuryONE's currency strategist, Andre Cilliers, noted, "The improved risk sentiment and Gold price holding above $2,000 contributed to the support of the local currency."