Forecasts for NZD to ZAR
The NZD to ZAR exchange rate is currently influenced by a combination of global trade dynamics and investor sentiment amidst ongoing geopolitical tensions. Recent announcements from U.S. President Donald Trump regarding tariffs on New Zealand imports have raised concerns about the NZD's performance, especially as tighter tariffs could negatively impact demand for New Zealand's key commodities. Analysts suggest that the Kiwi is likely to remain highly sensitive to shifts in market risk appetite, with potential for further weakness if sentiment continues to decline.
Currently, the NZD to ZAR exchange rate stands at 10.61, which is 1.1% below its three-month average of 10.73. This reflects a generally volatile trading environment, with the NZD fluctuating in a range from 10.40 to 11.27 over the past few months. Furthermore, the correlation between the NZD and AUD suggests that movements in the Australian dollar could also influence the New Zealand dollar because of their geographical proximity and shared dependence on commodity markets.
On the other hand, the South African rand (ZAR) faces its own challenges, particularly due to the imposition of a 30% reciprocal tariff rate from the U.S., affecting its trade balance. Experts note that South Africa's reliance on foreign investment to support its budget and current account deficits leaves the rand vulnerable to global investor sentiment, which can be further impacted by external factors like oil prices. In recent trading, oil prices have also demonstrated volatility, currently at 65.41, which is 5.0% below its three-month average of 68.83. This fluctuation in oil prices has implications for ZAR, as South Africa’s economy is sensitive to changes in commodity prices.
Overall, analysts forecast that both the NZD and ZAR will continue to navigate a challenging landscape influenced by trade policies, global economic conditions, and commodity price movements. The outlook remains cautiously pessimistic for both currencies in the short to medium term, with potential for further volatility as market sentiments evolve.
