Exchange Rate in South Africa
South Africa - Exchange Rate
Contagion from Turkey’s lira crisis hits rand in August
Amid the ongoing crisis in Turkey, the selloff in emerging markets (EM) continued into August as contagion from the freefall of the lira spread to other EM currencies. On 17 August, the rand traded at 14.78 per U.S. dollar, shedding 11.8% from the same day a month earlier. Moreover, the rand has weakened 19.4% against the dollar since the beginning of the year amid the global risk-off.
Although rising U.S. bond yields and weak growth prospects have kept the rand under pressure in recent months, the currency’s recent nosedive was primarily driven by contagion over the lira crisis. Given South Africa’s fondness for dollar-denominated debt, investors were quick to tie the rand’s fortunes to those of Turkey’s lira. Meanwhile, growth across Africa’s most-developed economy has been sluggish this year despite early hopes of “Ramaphoria”, and the SARB has been hesitant to hike rates in an effort to spur economic activity—stifling the rand and leaving inflation unchecked.
South Africa Exchange Rate Forecast
Looking ahead, the rand is expected to recover somewhat by the end of the year with firm economic fundamentals cushioning further losses. FocusEconomics analysts see the ZAR trading at 13.27 per USD at the end of 2018 and 13.06 per USD at the end of 2019.
South Africa - Exchange Rate Data
|Exchange Rate (vs USD)||10.47||11.57||15.50||13.68||12.38|
5 years of economic forecasts for more than 30 economic indicators.
South Africa Exchange Rate Chart
Source: Thomson Reuters.
South Africa Facts
|Bond Yield||8.81||0.29 %||Jan 14|
|Exchange Rate||13.78||-0.21 %||Jan 14|
|Stock Market||0.7||-0.44 %||Jan 11|
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December 12, 2018
Consumer prices climbed 0.2% from the previous month in November, down from October’s 0.5% increase.
December 11, 2018
A preliminary estimate showed the manufacturing sector rebounding in October.
December 5, 2018
In November, the Standard Bank Purchasing Managers’ Index (PMI) climbed 1.3 points to 48.2 points, closing in on the 50-point threshold that distinguishes deterioration from improvement in the South African private sector. November’s reading revealed a more modest deterioration in business conditions, reflected in smaller declines in output and new orders amid tepid demand.
December 4, 2018
South Africa’s economy bounced back in the third quarter from a short-lived technical recession in the first half of the year, expanding in seasonally-adjusted and annualized (saar) terms.
November 22, 2018
At its meeting ending on 22 November, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) opted to close the year by raising the repurchase rate by 25 basis points to 6.75%.