The latest gains add to the rand's stunning 2017 finish after Cyril Ramaphosa took the helm of the ruling ANC party earlier in December. Investors are betting Ramaphosa will launch crucial reforms.
The rand enjoyed its best quarter in more than seven years, and double-digit annual gains for a second straight year.
"South African bonds and FX have already delivered a strong relief rally due to Mr Ramaphosa's election," said Simon Quijano-Evans, at Legal & General Asset Management.
"The next big impulse will come from any actual departure of Mr Zuma from politics, in whatever form both the ANC and parliament decide."
Emerging European currencies occupy the top spot of best performing emerging currencies. The Czech crown and the Polish zloty are up nearly 20 percent against the dollar and 5 percent against the euro, with solid growth and likely central bank tightening expected to help extend the rally.
But Turkey's lira weakened 0.2 percent on the day as data showed the trade deficit widened more than 50 percent year-on-year in November. However, the losses followed a 1 percent bounce late on Thursday after Ankara and Washington mutually ended a months-long dispute and lifted visa restrictions.
The lira has weakened nearly 7 percent since January, on track for a fifth straight year of losses.
This article was provided by Bloomberg News.