Recent market movements show that the USD/ZAR is down 0.77%, it follows the news of the President of the United States, Donald Trump testing positive for the Covid-19. Previously, the South African Rand had seen several positive days continuously, however, as the news hit the market, everything changed.
The news of President Trump and First Lady testing positive for Covid-19 has resulted in huge effects around the world. This news has affected global markets, with most of the traders going on the defense. Also, the global equity indices were down when the information was announced, and since global events have such a huge effect on the South African Rand, the price of it has changed a lot recently.
Because of the unforeseen nature of this announcement, it had a huge effect on the price of Rand. The South African Rand is known to be very sensitive to the global economic market, and as investors move away from riskier assets, the price of it tends to come down very fast.
The South African Rand has had a successful few days, however, it faces some challenges now. During the last week, the South African was helped with better than n expected unemployment rate, and balance of trade figures, which has helped ZAR to stand at its current levels. Also, the relatively weaker Rand was mostly influenced by the Covid-19 pandemic and the global situation.
However, the numbers show that it is not enough and the country needs to do more to fight against every challenge that it has. There are many things that need to be done to get back to the pre-coronavirus numbers.
Changing prices of ZAR
If you are one of the traders from South Africa, you should take a good look at the table above. As the chart above shows, the national currency of South Africa has gone some hard times in the last few months. After a very successful year, the price of it fell drastically during the Covid-19 pandemic. One of the main reasons for it was the fact that the currency is very much influenced by the changes going on the worldwide market, and the impact of Covid-19 was huge on the national currency.
It saw some increase in April and May, however, soon after it dropped again and remained to be very unstable. Recently, at the begging of September, the price started to increase and many experts thought that it was finally the time for Rand to become stable again. However, once again, it was hit by global events.
Many countries around the world are getting ready for the second wave of Covid-19, which has a huge impact on the economy of many countries around the world, one of them being South Africa.
The chart above shows that there was some resistance from ZAR, however, it did not really work in the long run. For most of the summer, the price was very unstable and went very low quite a few times.
Also, there were some hopes of US stimulus had could provide some help for the ZAR. However, since the president of the United States tested positive for the Covid-19, this might need a little longer time to be done.
United States satin to be one o the most influential countries around the world, and it has a huge effect on the economy of many countries, including South Africa as well. The hit taken by Rand can be negative, and it can go one for several weeks, before the US elections.
Although the country has been doing good, and as the recent data shows, the unemployment levels are going very down, this still is not enough because of the ongoing events in the US. Upcoming US elections and Trump’s Coronavirus news can have a lot of influence on the country and its economy.