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||8.66||0.29 %||Mar 11|
|Exchange Rate||14.37||-0.21 %||Mar 11|
|Stock Market||0.6||-0.44 %||Mar 11|
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March 18, 2019
A preliminary estimate revealed little improvement for the manufacturing sector at the outset of the year.
March 5, 2019
South Africa’s economy slumped through last year-end but nonetheless expanded modestly in seasonally-adjusted and annualized (saar) terms.
March 5, 2019
In February, the Standard Bank Purchasing Managers’ Index (PMI) climbed 0.6 points to 50.2 points, landing above the 50-point threshold that distinguishes improvement from deterioration in the South African private sector for the first time in eight months. February’s reading reflected a more moderate fall in new orders, as well as stabilizing output on the heels of a seven-month decline.
February 20, 2019
Consumer prices fell 0.2% from a month earlier in January, in line with December’s outturn but landing below analysts’ expectations.
February 12, 2019
A preliminary estimate showed an ailing manufacturing sector in December.