USD/ZAR – Rate, Chart, Analysis & News
USD/ZAR is a Forex ticker that represents the price it will cost you in South African Rand to buy 1 USD. FX currencies are shortened to three-letter abbreviations for ease and are called ISO codes. The Forex market trades in these currency pairs and have a quote structure of Base/Quote (USD/ZAR).
The live USD/ZAR rate is shown below in an interactive chart that you can use for technical analysis. Our real-time news and analysis will keep you up to date with factors affecting the price movements of USD/ZAR, both fundamental and technical.
Recommended Forex Brokers to Trade USD/ZAR
The USD/ZAR pair refers to the trading of US Dollars and the South African rand, which is the currency for South Africa. This is an exotic currency pair with a wider spread than majors like(GBP/USD or EUR/USD).
The South African Rand is a relatively young currency as it came into existence in 1961 when it replaced the South African pound at a rate of 2 rand to 1 pound. Until the early 1970s, the rand was worth around R1.5 per U.S. dollar. However, it depreciated at a rapid rate in the following decades, with substantial moves at the turn of the 21st century, and during the Great Recession.
USD/ZAR Significant Price Movements
The South African Rand’s value has long been linked to the price of gold which is South Africa’s main export. However, it is also influenced by major world developments in other countries’ policies, interest rate hikes and trade deals. The ZAR was one of many emerging market currencies that were hit the hardest during the financial crisis in 2008. In the span of 12-months the rand fell by nearly 50 per cent against the U.S. dollar.
Due to changes in the political landscape in the early 1990s, the rand depreciated to record low levels. The subsequent land reforms and the 9/11 attacks saw global uncertainty hit record highs and the rand took a steep dive, falling to R13 per U.S. dollar.
Today, the rand is still somewhat correlated with gold prices as the South African economy has become reliant on its gold exports. However, an unstable political landscape and fragile economy have contributed to the depreciation of the rand.
Which is the best broker to trade the USD/ZAR pair?
There are not many online brokers that support day trading of the USD/ZAR pair. We are constantly evaluating new and existing brokers to recommend the most reliable ones. For more information, you can go to our page that reviews and compares the best Forex brokers to learn more about the different platforms where you can trade USD/ZAR.
When I trade the USD/ZAR pair will I own the actual currency?
No. CFDs allow you to speculate on rises and falls in the currency pair without having physical ownership. With CFDs, you only have to put in a fraction of the market value of the underlying asset when making a trade. Unlike investing, when you trade CFDs, you are not buying or trading the underlying asset. What you are buying/selling is a contract between yourself and the CFD provider.
How to trade the USD/ZAR pair?
The wider spread of the USD/ZAR pair creates a higher cost barrier for shorter-term strategies (i.e. day trading/scalping). The larger swings in price movements of the exotic currency pair result in broader movements and trends, which are better suited for a swing trading approach.
You can create a swing trading strategy for USD/ZAR using technical indicators. To create a swing trading strategy, you need to identify and focus on the long-term trend. To do so, you have to use the following indicators: Moving Averages, MACD, Parabolic SAR and the Average Directional Movement Index.
The three analysis techniques are fundamental, sentiment and technical. We’d recommend having a good grasp on the fundamentals because this pair isn’t as actively traded as others and so isn’t as liquid.
See other currency pairs live rates here.