The US dollar to South African exchange rate easesThanks to the adjustment in South Africa’s lockdown, which allowed some industries to continue operating, the US dollar to South African exchange rate eases. The move allows the rand to keep the greenback on its back foot as it maneuvers to take back its losses. Since March, bullish investors have successfully propelled the 50-day moving average significantly higher than the 200-day moving average, and now bears are determined to stop it from further advancing. Moreover, the South African government has lowered the closure restrictions, allowing sectors such as ports, essential maintenance, and basic material sectors to resume their production or activities. However, the recovery of the economy and sectors re expected to remain protracted. Experts also question whether bullish investors have enough strength to force the USDZAR trading pair lower as the 400 trillion-rand stimulus package weighs on the South African currency.
