November isn’t usually a great month for South Africa’s rand, but this one’s turning into an exception.
Not only is the currency headed for its biggest monthly gain against the dollar this year, but also its best November in 30 years. The gain of 8.1% this month is surpassed only by the 9.1% advance in November 1988.
The rand has weakened in November in seven of the last 10 years, according to data compiled by Bloomberg. But it climbed to a four-month high against the greenback on Thursday after Federal Reserve Chair Jerome Powell hinted at a softer policy stance, sending the dollar weaker and US 10-year yields below 3% for the first time since September.
South Africa’s currency gained 0.7% to 13.68 per dollar by 12:38 pm in Johannesburg, after strengthening 1.1% on Wednesday.