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||8.03||0.29 %||Jul 11|
|Exchange Rate||13.94||-0.21 %||Jul 11|
|Stock Market||0.1||-0.44 %||Jul 11|
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July 18, 2019
At its meeting ending 18 July, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) unanimously opted to cut the repurchase rate by 25 basis points to 6.50%, after holding rates for eight months.
July 11, 2019
The manufacturing sector decelerated in May, with the annual growth of production slowing to 1.0% from a revised 4.3% expansion in April (previously reported: +4.6% year-on-year).
July 3, 2019
In June, the IHS Markit Purchasing Managers’ Index (PMI) rose from 49.3 in May to 49.7 in June.
June 19, 2019
Consumer prices increased 0.3% month-on-month in May, down from 0.6% in April.
June 12, 2019
In May, the Standard Bank Purchasing Managers’ Index (PMI) fell 1.0 point to 49.3 points.