South African Assets Surge in ‘Everything Rally’ After Budget

South Africa’s rand strengthened below 17 per dollar for the first time since February 2023, while stocks and bonds rallied as investors applauded a mid-term budget update that included a lower inflation target and improving fiscal outlook.

The rand gained as much as 0.8%, hitting its strongest level in almost three years, on expectations the central bank will hold interest rates higher for longer to subdue price increases. The Johannesburg stock benchmark was the world’s best-performing equity index on Thursday, and yields on government rand bonds sank to the lowest in seven years.