The rand could strengthen to below R17 against the US dollar if the greenback continues to lose ground on global markets, Bheki Mahlobo, Economics and Policy Editor at The Common Sense, said on Friday.

The dollar gained just over 1.5% over the past week but has weakened by almost 10% year-to-date. That drop has lifted emerging-market currencies, with the rand among the main beneficiaries.

Despite that drop, the dollar remains historically elevated, sitting well above its 20-year moving averages.

On Friday, the rand was trading around R17.19 to the dollar, near its strongest level in six months. Mahlobo said a break below R17 could follow if the dollar comes off even marginally over the next month.

The rand was slightly softer on Monday morning, at about R17.30 for a dollar.

"A softer dollar environment will give the rand even more breathing room," Mahlobo said, adding that South Africa’s improved trade balance has also lent further support while a ceasefire in Gaza should fuel some global risk-on sentiment.