The USDZAR is a currency pair involving the US (USD) and South African (ZAR) currencies. It tells investors about the number of ZARs required to buy a USD. Let's understand it with an example.

What is USDZAR?

The USDZAR is an exotic pair, which means it has low liquidity compared to the forex market's major currency pairs. Also, it has a higher spread, meaning that the buying and selling price difference is more remarkable. Hence, it increases the transaction costs and chances of slippage and affects the trading strategies. Despite this, the USDZAR has many traders because of a more developed African economy than other developing countries. Like all other currency pairs, the USDZAR exchange rate fluctuates over time.

Here are some factors responsible for these fluctuations, including economic indicators and export goods. Additionally, traders learning how to invest in USDZAR must remember about political stability, which can significantly impact the currency pair value’s movements. Similarly, changes in monetary policies like interest rates, global trade tensions, and risk sentiments also affect exchange rate fluctuations.

How does USDZAR work?

The USDZAR trades on the forex market using support, resistance, and chart pattern strategies. The traders speculate on the exchange rate movements and buy or sell the pair to generate profit. Yet, everyone present in the forex market must prepare for the risk of potential losses by diversifying their portfolio. The currency pair works by trading on various platforms, like SimpleFX. First, the trader needs to open an account. SimpleFX provides a demo account where investors can learn how to trade USDZAR. It gives access to the simulation of real-time market conditions without financial risks.

USDZAR price history

2018

The year started with the exchange rate at 12.4024 ZAR and ended at 14.3606 ZAR. The highest and the lowest exchange rates were 15.4245 ZAR on 5th September and 11.5445 ZAR on 24th February, with the year's mean of 13.2488 ZAR.

2019

The year began with a USDZAR price of 14.3942 ZAR and ended at 14.0109 ZAR. The year's maximum value was 15.4527 ZAR, and 13.2619 ZAR was the minimum rate. Moreover, the average exchange rate for 2019 was 14.4496 ZAR.

2020

At the start of the year, USDZAR was at 14.0115 ZAR; by the end, it rose to 14.6624 ZAR. The exchange rate's highest value was 19.293 ZAR, reported on 5th April, and the lowest was 14.0115 ZAR at the start. However, the average exchange rate in 2020 was 16.4719 ZAR.

2021

On 1st January 2021, the USDZAR was at 14.663 ZAR; on 31st December 2021, it was 15.9505 ZAR. The pair showed the best rate at 16.2783 ZAR on 27th November 2021 and the worst at 13.4236 ZAR on 5th June 2021, with the year's mean rate of 14.7912 ZAR.

2022

The year commenced with the USDZAR at 15.9505 ZAR and ended at 17.0229 ZAR, with the best and the worst rates of 18.4048 on 3rd November and 14.4474 ZAR on 25th March, respectively. 16.3742 ZAR was the average exchange rate of the year.

Current USDZAR price

The current USDZAR price is subject to fluctuation due to the volatility of the forex market. Investors can check it on the chart or the SimpleFX Webtrader platform.

Is USDZAR a good investment?

Whether USDZAR is a good investment depends on factors such as interest rates, monetary policies, geopolitical events, etc. The answer depends on analyzing these factors and the potential returns on investment. If the factors are also stable and there are more chances of return, this currency pair brings more interest from investors eager to learn how to invest in forex worldwide.

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