The Federal Reserve will make its first rate decision under Kevin Warsh this week. However, USD/ZAR has multiple factors opposing it.
The USD/ZAR currency pair has been rising slowly but steadily since late July, with gains accumulating past 1.1% in the last five sessions.
Despite the USD being stronger than most major currencies, the USD/ZAR is down over 6% this year with a notable barrier near 16.20 recently.
The USD/ZAR exchange rate rose by a few pips today, July 9, as crude oil prices rose following the new strikes in the Middle East. It jumped to 16.50 on Wednesday and then pulled back a bit to 16.37.
After being on a downtrend since late June, USD/ZAR is getting its grip back with nearly 1% gain in the last 12 hours.
Traders are exercising caution on the USD/ZAR ahead of two high-profile risk events this week, even as a bullish chart pattern evolves.
South African Rand: USD/ZAR rally selling strategy stays in focus – Societe Generale
The USD/ZAR exchange rate remained in a narrow range this month, even as the US Dollar Index (DXY) continued its strong rally. This consolidation may end soon as South Africa's inflation rises and a carry-trade opportunity emerges amid rising Fed and SARB divergence.
The USD/ZAR exchange rate will be in the spotlight this week as investors react to a recent court ruling that raised impeachment risks for President Cyril Ramaphosa. It was trading at 16.43, down from the April high of 16.91 and the year-to-date high of 17.2470.
The South African rand continued its strong momentum today, reaching its lowest level since April 22nd as a carry trade opportunity emerged. The USD/ZAR pair dropped to 16.4, down sharply from the year-to-date high of 16.90.
The USD/ZAR exchange rate remained under pressure this week as traders waited for the upcoming South African inflation report, which will provide more information on what to expect from the country's central bank. It was trading at 16.3600, much lower than the year-to-date high of 17.2350.
USD/ZAR was on the ascent in March but has declined by over 2% in April. The pair has had quite some action in 2026, but is a rally coming?