Exchange Rate in South Africa
South Africa - Exchange Rate
Rand hits eight-month high in November on Biden win and positive Covid-19 vaccine trials
The South African rand (ZAR) posted strong gains against the U.S. dollar over the past month, largely reflecting improved market sentiment following Joe Biden’s win in the U.S. presidential election and optimistic Covid-19 vaccine developments. On 9 November, the rand hit an eight-month high of 15.37 ZAR per USD, before weakening somewhat and trading at 15.60 ZAR per USD on 13 November, which marked a 6.0% appreciation over the previous month. Despite this upturn, the rand remained down 4.3% year-on-year and 10.3% year-to-date.
The currency was primarily buoyed over the past month by a higher risk appetite for emerging-market assets. A weakened greenback after Joe Biden’s win in the U.S. presidential elections and increased hopes of a more stable U.S. foreign policy stance ahead drove investors towards higher-yielding assets, which supported demand for the ZAR. Moreover, market sentiment was lifted by positive results from several Covid-19 vaccine trials, improving expectations of a global economic recovery and a gradual return to normality. Furthermore, positive PMI data for the South African manufacturing sector in October provided a further boost to the currency, as firms continued to reopen following the easing of lockdown conditions.
Moving forward, the rand is currently forecast to weaken from current levels as a prolonged public health crisis and the frail economic backdrop are set to weigh on the currency. Further ahead, the ZAR should regain some ground as the economy bounces back from the coronavirus-induced downturn.
FocusEconomics Consensus panelists see the ZAR ending 2021 at 16.92 per USD and 2022 at 16.77 per USD.
South Africa - Exchange Rate Data
|Exchange Rate (vs USD)||15.50||13.68||12.38||14.39||13.98|
5 years of economic forecasts for more than 30 economic indicators.
South Africa Exchange Rate Chart
Source: Thomson Reuters.
South Africa Facts
|Bond Yield||8.26||0.29 %||Dec 31|
|Exchange Rate||13.98||-0.21 %||Dec 31|
|Stock Market||0.1||-0.44 %||Jan 06|
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June 22, 2022
Consumer prices rose 0.68% over the previous month in May, picking up from April's 0.59% rise.
June 9, 2022
Manufacturing output collapsed 5.4% month-on-month in seasonally-adjusted terms in April (March: +0.3% mom).
June 7, 2022
In the first quarter of the year, the South African economy returned to its pre-pandemic level.
June 3, 2022
The S&P Global Purchasing Managers’ Index (PMI) rose to 50.7 in May, up from April’s four-month low of 50.3.
May 19, 2022
At its 19 May meeting, the Monetary Policy Committee of the South African Reserve Bank (SARB) voted to increase the repurchase rate by a further 50 basis points, bringing it to 4.75%.