The Rand to Dollar exchange rate has been strongly impacted by developments from the US Election – and ZAR has made major gains on the American currency
The tumultuous events across the pond may be instilling anxiety into those heavily invested in political matters – but the US Election chaos may, in the short term, be beneficial for us here in South Africa. The Rand value has strengthened against the Dollar, reaching an eight-month high with our exchange rate.
South Africa’s first positive coronavirus case was reported on 5 March – eight months ago to the day. Just a few weeks later, a hard lockdown and a surge in infections followed. These developments devastated the Rand, which recorded its worst-ever exchange rate against the greenback, plunging to R17.91.
US ELECTION: HOW ZAR IS PROFITING FROM THE CHAOS
The recovery has been slow and unsteady, but in more recent months, there has been less fluctuation. The Rand has been happy to stay trading around the R16.50 mark. That all seems to be changing this week, however, as a Biden victory could knock the American markets off-track.
Rather than being a slant at Biden’s competency, a decrease in the value of the Dollar would simply be down to the aftermath of a presidential switch-over. Trump won’t go quietly from the White House – should it come to that – and a transition to new leadership is likely to leave the US currency on shaky ground until the new year.
Us Dollar To Rand Exchange Rate for Thursday 5 November
- The rand hit R15.83 to the greenback at around 20:35 on Wednesday night.
- This represents its best levels since the first week of March.
- ZAR has since drifted out to R15.89 early on Thursday morning.
- Over the past 48 hours, the Rand has gained an enormous 3.4% against the Dollar.