The South African rand hovered around 17 per dollar on Friday and was set for an over 4% weekly loss after hitting a 6-month high in the previous week. Emerging market currencies have been hit by a sell-off, as anxiety about the fate of the economic recovery due to rising coronavirus cases, especially in Europe, and lack of US stimulus dampen investors sentiment. However, the sell-off eased on Friday, on prospects that a new US Covid-19 relief package is coming soon. Domestically, fiscal risks persist ahead of the mid-term budget in October.
Historically, the South African Rand reached an all time high of 19.35 in April of 2020. South African Rand - data, forecasts, historical chart - was last updated on September of 2020.
The South African Rand is expected to trade at 17.30 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 17.85 in 12 months time.