The South African rand depreciated to 14.8 against the US dollar in late September, its lowest level since August 26th, after three weeks of strong gains, pressured by a stronger dollar and a more pessimistic economic outlook for the country. Recent weak domestic economic data raised concerns that the impact of social unrest and tighter lockdown restrictions could derail South Africa's economic recovery. Also, a retreat in commodity prices and a recommendation from investment bank JPMorgan to sell the currency weighed on the rand's appeal. Meanwhile, market sentiment continued to be hit by persistent fears of a slowdown in global growth due to the fast-spreading Delta variant and the prospect of an early tapering of Federal Reserve stimulus.
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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 September of 2021.
The South African Rand is expected to trade at 14.94 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 15.46 in 12 months time.