Exchange Rate Calculator

Over the past few months, the exchange rate between the South African Rand (ZAR) and the United States Dollar (USD) has exhibited notable fluctuations, reflecting a complex interplay of global economic trends and domestic factors within South Africa. Understanding these dynamics is crucial for investors, policymakers, and businesses engaged in activities involving these currencies.

Recent Exchange Rate Trends

As of March 20, 2025, the exchange rate stood at 18.19 ZAR per USD, indicating a depreciation of the Rand compared to earlier in the year. For instance, on January 10, 2025, the rate was 19.04 ZAR per USD, suggesting a strengthening of the Rand over this period.

This trend is further supported by data from March 14, 2025, where the exchange rate was 0.0551 USD per ZAR, compared to 0.0523 USD per ZAR on January 10, 2025.

Factors Influencing the Exchange Rate

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

Global Economic Policies and Market Sentiment

The strength of the U.S. dollar has been influenced by global economic concerns, including tariff policies and slowing growth. On April 17, 2025, the dollar strengthened by 0.3% against a basket of currencies, reflecting market reactions to these global economic issues.

Domestic Political Developments

In South Africa, political developments have also played a role. Investors have been closely monitoring the stability of the coalition government, particularly in light of disagreements over a proposed value-added tax (VAT) hike scheduled for May 1. The Democratic Alliance (DA), part of the coalition with the African National Congress (ANC), opposes the hike and has challenged it in court, raising concerns about the coalition's stability.

Technical Analysis

Technical indicators as of February 27, 2025, suggested a bearish outlook for the ZAR/USD pair. The Relative Strength Index (RSI) was at 39.399, indicating selling pressure. Moving averages also pointed towards a 'Strong Sell' signal, with both simple and exponential moving averages for periods ranging from 5 to 200 days below the current price.

Implications and Outlook

The interplay between global economic policies and domestic political developments suggests that the ZAR/USD exchange rate may continue to experience volatility. Investors should remain vigilant, considering both international economic trends and South Africa's internal political landscape when making decisions related to these currencies.

In conclusion, the ZAR/USD exchange rate has been subject to significant fluctuations influenced by a combination of global economic factors and domestic political events. Staying informed about these developments is essential for stakeholders engaged in activities involving the South African Rand and the U.S. Dollar.