Rand Rebound Sets Stage for Rally to Resume as Metals Stabilize

South Africa’s rand rebounded on Monday after the worst selloff since the tariff turmoil in April, and investors see the currency resuming gains that have made it one of the best performers among emerging-market peers over the past year.

The rand climbed as much as 1.3% against the dollar as metals and equities clawed back losses. The factors that supported the rally — a credible central bank, a stable governing coalition, favorable terms of trade and high real interest rates — remain in place, according to strategists including Deutsche Bank AG’s Christian Wietoska.