South Africa's rand remains undervalued despite a year-long rally, according to a Bloomberg survey of investors and economists. Respondents point to ongoing currency appreciation potential as President Cyril Ramaphosa's reform agenda gains traction.

The currency's strengthening reflects growing confidence in South Africa's economic turnaround. After years of stagnation and political uncertainty, recent policy changes have stabilized markets. Investors are particularly focused on fiscal discipline measures and structural reforms.

Financial markets expect the rand to benefit from improved growth prospects and reduced risk premiums. Analysts suggest foreign capital inflows could accelerate if reform momentum continues. However, global emerging market volatility remains a key watch factor.