The South African rand's resilience is likely to be tested in the coming months. Economists at TD Securities expect the USD/ZAR pair to hit 18.00 before easing back lower to 15.90 by the end of the next year.

SARB’s tightening to support the rand

“We think that USD/ZAR will trade as high as 18.00 in Q1 2023, but ultimately the SARB's tightening and steep SAGB curve are supporting factors that will help stem rand weakness.”

“We expect USD/ZAR to end 2023 at 15.90.”