The USD to ZAR exchange rate is currently range-bound.
The US Federal Reserve is expected to implement rate cuts, which could weaken the USD in 2026. In contrast, South Africa's economy is projected to grow at a slightly higher rate, supported by better electricity availability and infrastructure improvements. Additionally, the recent easing of monetary policy by the South African Reserve Bank, along with a new inflation target, suggests potential strength for the ZAR.
The USD/ZAR exchange rate is expected to trade within a stable range in the near term, influenced by current market levels.
An upside risk for the ZAR could arise from improved commodity prices, particularly oil, if they rebound from recent declines. Conversely, the downside risk for the rand may stem from any unexpected shifts in global economic sentiment that could favor the USD amidst broader market volatility.