Exchange Rate Calculator

The exchange rate between the Australian Dollar (AUD) and the South African Rand (ZAR) has experienced notable fluctuations over the past several months. This report provides an analysis of the recent trends, key influencing factors, and future projections for the AUD/ZAR currency pair.

Recent Exchange Rate Trends

Historical Performance:

• October 2024: The AUD/ZAR exchange rate reached its highest point in recent months, peaking at 11.987 ZAR per AUD on October 3, 2024.

• December 2024: The rate declined to its lowest value during this period, recording 11.296 ZAR per AUD on December 11, 2024.

• March 2025: By March 7, 2025, the exchange rate stood at 11.504 ZAR per AUD, indicating a slight recovery from the December low.

Overall Trend:

Between September 9, 2024, and March 7, 2025, the AUD/ZAR exchange rate experienced a decrease of approximately 3.44%, reflecting a depreciation of the Australian Dollar relative to the South African Rand.

Factors Influencing the Exchange Rate

Several factors have contributed to the observed fluctuations in the AUD/ZAR exchange rate:

1. Commodity Prices:

• Australia: As a major exporter of commodities such as iron ore and coal, Australia's currency is significantly influenced by global commodity prices. A decline in these prices can lead to a weaker AUD.

• South Africa: Similarly, South Africa's economy is heavily reliant on mining exports, including gold and platinum. Increases in these commodity prices can strengthen the ZAR.

1. Interest Rate Differentials:

• The monetary policies of the Reserve Bank of Australia (RBA) and the South African Reserve Bank (SARB) affect investor decisions. Higher interest rates in South Africa compared to Australia can attract capital inflows to South Africa, bolstering the ZAR.

1. Economic Indicators:

• Australia: Indicators such as GDP growth, employment rates, and trade balances impact the AUD.

• South Africa: Economic performance metrics, including inflation rates and political stability, influence the ZAR.

1. Global Economic Conditions:

• Global events, such as economic downturns or geopolitical tensions, can lead to risk aversion among investors, affecting emerging market currencies like the ZAR.

Future Projections

Short-Term Forecasts:

• Next Three Months: Analysts predict that the AUD/ZAR exchange rate may rise to approximately 12.1, representing a 5.79% increase from the current rate of 11.4373.

Long-Term Projections:

• One-Year Outlook: Projections estimate an average exchange rate of 12.2045 ZAR per AUD, with a range between 12.0825 and 12.3265.

• Five-Year Outlook: The exchange rate is expected to average 12.9259 ZAR per AUD, fluctuating between 12.7967 and 13.0552.

Conclusion

The AUD/ZAR exchange rate has exhibited volatility over the past several months, influenced by factors such as commodity prices, interest rate differentials, and global economic conditions. While short-term forecasts suggest a potential appreciation of the AUD against the ZAR, long-term projections indicate a gradual increase in the exchange rate. Stakeholders should monitor these factors closely to make informed decisions regarding this currency pair.