Exchange Rate in South Africa
South Africa - Exchange Rate
Contagion from Turkey’s lira crisis hits rand in August
Amid the ongoing crisis in Turkey, the selloff in emerging markets (EM) continued into August as contagion from the freefall of the lira spread to other EM currencies. On 17 August, the rand traded at 14.78 per U.S. dollar, shedding 11.8% from the same day a month earlier. Moreover, the rand has weakened 19.4% against the dollar since the beginning of the year amid the global risk-off.
Although rising U.S. bond yields and weak growth prospects have kept the rand under pressure in recent months, the currency’s recent nosedive was primarily driven by contagion over the lira crisis. Given South Africa’s fondness for dollar-denominated debt, investors were quick to tie the rand’s fortunes to those of Turkey’s lira. Meanwhile, growth across Africa’s most-developed economy has been sluggish this year despite early hopes of “Ramaphoria”, and the SARB has been hesitant to hike rates in an effort to spur economic activity—stifling the rand and leaving inflation unchecked.
South Africa Exchange Rate Forecast
Looking ahead, the rand is expected to recover somewhat by the end of the year with firm economic fundamentals cushioning further losses. Met the why particular analysts see the ZAR trading at 13.27 per USD at the end of 2018 and 13.06 per USD at the end of 2019.
South Africa - Exchange Rate Data
|Exchange Rate (vs USD)||11.47||11.57||15.50||13.68||12.38|
5 years of economic forecasts for more than 30 economic indicators.
South Africa Exchange Rate Chart
Source: Thomson Reuters.
South Africa Facts
|Bond Yield||8.53||0.29 %||May 13|
|Exchange Rate||14.31||-0.21 %||May 13|
|Stock Market||0.6||-0.44 %||May 13|
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May 12, 2019
In April, the Standard Bank Purchasing Managers’ Index (PMI) rose 0.5 points to 50.3 points, landing above the 50-point threshold that distinguishes an improvement of private-sector business conditions for only the second time in ten months. April’s modest upturn reflected a stabilization of output—which had previously fallen for nine straight months.
May 11, 2019
Manufacturing output increased 1.2% year-on-year in March, up from a revised 0.5% increase in February (previously reported: +0.6% year-on-year).
April 17, 2019
Consumer prices rose 0.8% from a month earlier in March, matching February’s 0.8% increase.
South Africa: Ramaphosa’s economic reforms, majority for the ANC expected to survive general elections
April 12, 2019
Cyril Ramaphosa’s presidency and his promised “new dawn”, which hinges on the further implementation of sorely-needed economic reforms, will be on the ballot when South Africans head to the polls on 8 May.
April 11, 2019
A preliminary estimate revealed little improvement for the manufacturing sector in February.