USD/ZAR refers to the US Dollar/ South African rand currency pair. The ZAR replaced the South African pound in 1961, and it remained pegged to the US dollar until apartheid ended and Nelson Mandela was elected Prime Minister of South Africa in 1994....
The ZAR is issued by South African Reserve Bank (SARB), the country’s central bank and primary gold custodian. The SARB is a unique monetary authority in that it is privately owned though the interests of the overall economy are protected by regulation that limits individual shareholders to owning no more than 1% of the outstanding shares. The price of ZAR is closely correlated to the price of gold, which is one of South Africa’s biggest exports. Alongside, iron ore and palladium, which it sells primarily to Europe, China, and the US. In 1967, Rand Refinery and the South African Mint started to mint coins called Krugerrands to help market South African gold internationally and enable individuals to own some of the safe-haven commodity. They were never given a rand value. Instead, their worth is determined by the current gold price at the time of trading. To date, Krugerrands are among the most widely globally traded gold coins. The 2008 financial crisis weakened the rand against dollar, however, many other nations in the region, like Lesotho and Eswatini (formerly Swaziland) still peg their currencies to the rand.
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The USD/ZAR is trading in a higher price range as nervous financial institutions continue to show a high degree of anxious thinking regarding mid-term outlook while the new U.S leadership is considered.
In my daily analysis of exotic currency pairs, it’s worth noting that the US dollar initially fell against the South African Rand, only to find a ton of support underneath to keep the market somewhat afloat.
The USD/ZAR has opened with tranquil trading this morning and has returned to a slightly higher one week middle ground via technical charts.
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The US dollar has rallied rather significantly against the South African Rand breaking above the 50-day EMA after the US election result but have since then given back about half of the gains.
The USD/ZAR moved towards rather durable support in early trading this morning when the 17.50000 level was penetrated slightly lower temporarily, but then produced a slight reversal higher.
The USD/ZAR hit a high of nearly 17.86300 on Wednesday after last week, but since touching this high the currency pair has returned to a known price range amidst a nervous global Forex market.
In my daily analysis of exotic currency pairs, the USD/ZAR pair captures my attention as we continue to test the crucial 17.70 ZAR level.
In the past couple of days the USD/ZAR has traded slightly lower and is maintaining what can be argued to be a sideways trajectory as caution takes hold of Forex markets.
During my daily analysis of the USD/ZAR pair, the first thing I see is that we initially pulled back, but we have turned around to show signs of life.
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The USD/ZAR has moved slightly lower in early trading this morning, this as the currency pair is correlating to broad Forex price action while financial institutions remain cautious.
The USD/ZAR has traded higher in the past handful of days as a combination of risk adverse sentiment, U.S interest rates concerns, and domestic news effect financial institutions.
The US dollar initially rallied during the trading session on Wednesday to try to reach the 17.50 Rand level, an area that was tested during the previous session.
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Lower price action going into the weekend for the USD/ZAR has been sustained in early trading today as the currency pair tests technical lows not seen since January of 2023.
As of this writing the USD/ZAR is traversing near the 17.39825 ratio with fast changes of value.
The USD/ZAR exchange rate is once again near important support which has been tested almost on a weekly basis since the third week of August.