{"id":11281,"date":"2022-01-28T16:15:50","date_gmt":"2022-01-28T13:15:50","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=11281"},"modified":"2026-05-26T10:57:08","modified_gmt":"2026-05-26T07:57:08","slug":"how-to-trade-usd-zar","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2022\/01\/28\/how-to-trade-usd-zar\/","title":{"rendered":"How to Trade USD\/ZAR"},"content":{"rendered":"\n

USD\/ZAR<\/a> — US dollar vs South African rand — is quite an exotic currency pair<\/a>, not really popular among traders. Trading this asset has certain peculiarities and internal laws.<\/p>\n\n\n\n

Some say that, compared to other pairs, this one is less liquid. However, on the D1 of USD\/ZAR one could see a lengthy uptrend from the end of 2011 till the beginning of 2016. That time the quotations rose from 6.40 to 17.97, then declined several times in the form of corrections, and then started growing again.<\/p>\n\n\n\n

\"Growth<\/a>
Growth of USD\/ZAR quotations<\/em><\/figcaption><\/figure>\n\n\n\n

At the very first glance you can see that USD\/ZAR is capable of strong movements. And not only ascending ones that prevail but also lengthy declines. Do you want to know right now how to trade this currency pair<\/a>, making use of all its characteristics? Let me tell you.<\/p>\n\n\n\n

<\/span><\/a>Main info about the rand<\/span><\/h2>\n\n\n\n

South Africa got its national currency is 1961 instead of the South African pound. At that time, 1rand cost 1.4 USD. However, in 1982 already sanctions imposed on South Africa made the exchange rate fall to 1 USD.<\/p>\n\n\n\n

Subsequent economic recovery was short-term and prevented the national currency from returning to previous levels. New political turmoil that started in the 1990s made the rate fall deeper down.<\/p>\n\n\n\n

\"Strong<\/a>
Strong falling of USD\/ZAR<\/em><\/figcaption><\/figure>\n\n\n\n

The economy recovered in 2001. At that time, the rate shrunk from 13.85 to 5.60 in over 3 years. However, the slow-down of the economy of China, which is the main trade partner<\/a> of South Africa, pushed the rate of rand down to 11.90 by the end of 2008.<\/p>\n\n\n\n

In 2015, USD\/ZAR renewed the highs of 2001 and remains above these levels.<\/p>\n\n\n\n

\"Growth<\/a>
Growth of USD\/ZAR in 2008 and 2015<\/em><\/figcaption><\/figure>\n\n\n\n

The trend remains bullish for the USD, and a serious support level is between 13.85 and 11.90. Sellers have not yet managed to break through this area. A decline below 11.50 might send the pair to the lows of 6.50 and 5.60.<\/p>\n\n\n\n

\"USD\/ZAR<\/a>
USD\/ZAR support level<\/em><\/figcaption><\/figure>\n\n\n\n

<\/span><\/a>Economic characteristics<\/span><\/h3>\n\n\n\n

In South Africa, the income is above average, and the economy of the country makes up for about 25% of the GDP<\/a> of the whole continent. However, certain problems are hindering its development, such as poor education levels, high unemployment and crime rates, uneven spreading of income in the population, electricity problems.<\/p>\n\n\n\n

The key sectors of economy are mining, food, and car industries, agriculture, fishing, retailing and wholesale, and tourism. The driver of the economy is gold<\/a> and diamond mining.<\/p>\n\n\n\n

Political unrest alongside increasing unemployment and crime rates deteriorate the economic situation in the country and make the national currency retreat. Foreign investors lose interest in the rand and prefer investing in less risky assets.<\/p>\n\n\n\n

The South African rand is a commodity currency, so its rate depends heavily on commodity prices.<\/p>\n\n\n\n

<\/span><\/a>Trading characteristics of the currency pair<\/span><\/h2>\n\n\n\n

The pair reflects the relation of the US dollar to the South African rand. When I was preparing this article, you could buy a bit more than 15 ZAR for 1 USD. The growth of the pair means that the dollar is becoming stronger, and falling means that the rand is growing.<\/p>\n\n\n\n

Trading characteristics:<\/p>\n\n\n\n