Exchange Rate Calculator

The exchange rate between the Swedish Krona (SEK) and the South African Rand (ZAR) has experienced notable fluctuations over the past several months. This report provides an analysis of the recent trends, underlying factors influencing these movements, and projections for the near future.

Recent Exchange Rate Trends

As of May 3, 2025, the SEK/ZAR exchange rate stands at approximately 1.807 ZAR per 1 SEK. Over the past 180 days, the exchange rate has exhibited significant variability:

• Highest Rate: 1.8095 ZAR on March 7, 2025.

• Lowest Rate: 1.5579 ZAR on November 15, 2024.

• Average Rate: 1.6847 ZAR over this period.

This data indicates a general strengthening of the Swedish Krona against the South African Rand, with a notable increase of approximately 8.27% over the last 90 days.

Factors Influencing the Exchange Rate

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

1. Economic Indicators:

• Sweden: The Swedish economy has demonstrated resilience, with steady GDP growth and controlled inflation rates. The Riksbank's monetary policies, including interest rate adjustments, have bolstered investor confidence in the Krona.

• South Africa: Conversely, South Africa has faced economic challenges, including sluggish GDP growth and higher inflation rates. These factors have exerted downward pressure on the Rand.

1. Geopolitical Events:

• Political stability in Sweden has provided a conducive environment for economic growth, enhancing the Krona's appeal.

• In contrast, South Africa has experienced political uncertainties and policy shifts, which have negatively impacted investor sentiment and the Rand's value.

1. Commodity Prices:

• South Africa's economy is heavily reliant on commodity exports. Fluctuations in global commodity prices, particularly in the mining sector, have directly influenced the Rand's performance.

1. Global Market Sentiment:

• During periods of global economic uncertainty, investors often seek safe-haven currencies. The Swedish Krona, perceived as more stable, has benefited from such trends, leading to its appreciation against the Rand.

Technical Analysis

Technical indicators as of January 8, 2025, suggest a bullish trend for the SEK/ZAR pair:

• Relative Strength Index (RSI): At 65.005, indicating buying momentum.

• Moving Averages: Short-term moving averages (MA5, MA10) are above longer-term averages, reinforcing the upward trend.

Forecast and Outlook

Projections for the SEK/ZAR exchange rate vary among analysts:

• Short-Term Forecast: Some forecasts anticipate a slight depreciation of the Krona against the Rand, with the exchange rate potentially reaching 1.6667 ZAR per 1 SEK in the next three months.

• Medium to Long-Term Forecast: Other analyses predict continued strengthening of the Krona, with the exchange rate possibly reaching 2.19 ZAR per 1 SEK in the next six months and 2.30 ZAR in the next year.

Conclusion

The SEK/ZAR exchange rate has shown significant volatility over the past several months, influenced by economic indicators, geopolitical events, commodity prices, and global market sentiment. While technical analysis indicates a bullish trend, forecasts for the near future are mixed, reflecting the complex interplay of factors affecting these currencies. Investors and stakeholders should closely monitor ongoing economic developments and geopolitical events in both Sweden and South Africa to make informed decisions regarding the SEK/ZAR currency pair.