The South African rand was trading around 14.8 against the US dollar, its lowest since October 15th, amid general dollar strength and further evidence that the US Federal Reserve will begin tapering this year. At the same time, expectations are increasing that South Africa’s central bank is likely to hike interest rates soon amid accelerating inflation and after it warned of upside risks to its inflation outlook, including higher energy costs and realigning exchange rates that could stem from policy tightening in advanced economies. Meanwhile, recent data showed South Africa's economic recovery from the pandemic has been uneven across sectors, partly due to deadly riots, arson and looting that erupted in July and derailed economic activity in the two biggest provinces.
Historically, the South African Rand reached an all time high of 19.35 in April of 2020. South African Rand - data, forecasts, historical chart - was last updated on October of 2021.
The South African Rand is expected to trade at 14.98 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 15.51 in 12 months time.