Exchange Rate Calculator

The exchange rate between the New Zealand Dollar (NZD) and the South African Rand (ZAR) has exhibited notable fluctuations over the past few months. This report provides an analysis of the recent trends, underlying factors influencing these movements, and potential future outlooks for the NZD/ZAR currency pair.

Recent Exchange Rate Trends

As of July 2, 2025, the NZD/ZAR exchange rate stood at approximately 10.7005, reflecting a slight decrease of 0.33% from the previous day's close. Over the past month, the exchange rate has experienced a range between 10.6378 and 10.9311, indicating moderate volatility. Notably, the highest rate recorded in 2025 was 11.261 ZAR per NZD on April 24, while the lowest was 10.388 ZAR per NZD on February 10. (exchange-rates.org)

Factors Influencing the Exchange Rate

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

1. Economic Indicators: Economic performance indicators such as GDP growth, employment rates, and trade balances in both New Zealand and South Africa significantly impact their respective currencies. For instance, stronger-than-expected economic growth in New Zealand can bolster the NZD, while economic challenges in South Africa may weaken the ZAR.

2. Interest Rate Differentials: The monetary policies of the Reserve Bank of New Zealand (RBNZ) and the South African Reserve Bank (SARB) influence investor decisions. Higher interest rates in New Zealand relative to South Africa can attract investors seeking better returns, thereby strengthening the NZD against the ZAR.

3. Commodity Prices: Both countries are major exporters of commodities—New Zealand in dairy products and South Africa in minerals and metals. Fluctuations in global commodity prices can affect export revenues and, consequently, the strength of their currencies.

4. Political Stability and Economic Policies: Political events, policy decisions, and economic reforms can influence investor confidence. Political uncertainty or unfavorable policies in either country can lead to currency depreciation.

Historical Context

Looking at the broader historical context, the NZD/ZAR exchange rate has seen significant variations. For example, in 2024, the exchange rate reached a high of 11.958 ZAR per NZD on February 23 and a low of 10.253 ZAR per NZD on December 11, with an average rate of 11.091 ZAR per NZD for the year. (exchange-rates.org)

Future Outlook

Forecasts for the NZD/ZAR exchange rate suggest a gradual appreciation of the NZD against the ZAR over the next few years. Projections indicate that the exchange rate could reach approximately 11.59 ZAR per NZD within five years, representing a 7.70% increase from current levels. (coincodex.com)

However, it's essential to approach such forecasts with caution, as exchange rates are influenced by a complex interplay of factors, including unforeseen economic developments, changes in commodity prices, and shifts in global financial markets.

Conclusion

The NZD/ZAR exchange rate has demonstrated moderate volatility in recent months, influenced by economic indicators, interest rate differentials, commodity prices, and political events in both New Zealand and South Africa. While forecasts suggest a potential appreciation of the NZD against the ZAR in the coming years, investors should remain vigilant and consider a comprehensive range of factors when making currency-related decisions.