The South African rand was trading around 16 against the USD, close a one-month low of 16.1 hit on June 13th, amid general dollar strength on expectations of prolonged aggressive interest rate hikes by the Federal Reserve to tame inflation. Domestically, the South African Reserve Bank last month unveiled its biggest rate increase in more than six years and signaled further rate hikes in the context of the gradual policy normalization. On the economic data front, the South African economy expanded more than expected in Q1 but both manufacturing and mining activity contracted sharply in April.
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 June of 2022.
The South African Rand is expected to trade at 16.37 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 17.61 in 12 months time.