The South African rand climbed to a 15-month high of 14.132 per USD on Friday, after weak jobs report in the US prompted a selloff in the dollar while traders await a review of South Africa's sovereign credit by Moody's later in the day. On Thursday, the South African governing party ANC suspended one of its top officials, Ace Magashule, in a move seen as a sign of President Cyril Ramaphosa's growing control over his divided party. On the data front, Markit PMI data showed South Africa’s private sector grew the most since 2012 and business confidence jumped to the highest since July 2015, amid hopes that the COVID-19 pandemic will end and that business conditions will improve. On the monetary policy front, the South African Reserve Bank has been keeping rates unchanged at a record low of 3.5% since July 2020 amid the Covid-19 pandemic but policymakers anticipate two interest rate hikes of 25bps each in Q2 and Q4 2021.
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 May of 2021.
The South African Rand is expected to trade at 14.20 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 14.65 in 12 months time.