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 near the 18.41890 ratio as of this writing, but as the day begun the currency pair did touch a depth around the 18.35455 mark.
The US dollar initially tried to rally a bit during the early hours on Thursday, but then pulled back to reach the 18.50 level.
The move lower in the USD/ZAR which started with a solid dose of price velocity on the 25th of April has continued into early trading this morning.
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The USD/ZAR has moved to new lows this morning as incremental selling of the currency pair continues, but speculative suspicions need to be given attention.
The US dollar rallied a bit during the trading session on Wednesday, as we continue to threaten a major resistance barrier in the form of 19.25 ZAR.
From Tuesday onwards and throughout last week the USD/ZAR hovered mostly above the 19.00000 level.
The USD initially pulled back against the ZAR during the trading session on Wednesday but has found support below the 19 Rand level in order to get involved.