South Africa’s flagship currency Rand has staged a major recovery against the US Dollar this week, reaching the best level not seen since 2019.
The Rand briefly dipped below the $1 : R14 mark on Monday, before stabilizing between R14.00 to R14.10. But what has caused this fluctuation in the exchange rate.
This time last year, the Rand was in meltdown against the US Dollar. As the value threatened to break the R20 mark, months of gradual recovery brought the currency back to the R15 range. But, following a strong few weeks, ZAR has made in-roads on the Greenback, yet experts believe this is probably the peak of the resurgence:
“It will be interesting to see whether there is enough momentum for the rand to make a run at the 14.00 level. The expectation is for the rand to test lower, but the fact that 14.05 has held a couple of times leads us to believe that going lower could be a tough slog.