The currency code of South African Rand is ZAR. It is the emerging in the foreign exchange market just like the others such as:
• Hong Kong dollar
• Chinese Yuan
• Singapore dollar
• Mexican Peso
• Brazilian Real
The USD/ZAR is the most popular pair on trading platform. It is also paired with EUR and GBP in Forex market.
Financial status of Rand and dollar
Economy of South Africa depends on foreign trade. Mining is the one sector that can help South African's Rand value to rise in the world economy. Developed areas are concentrated in Durban, Johannesburg, Port Elizabeth and Cape Town, but everywhere else, poverty is still visible with 20% of unemployment. Overall economy has been performing well recently with Rand value increasing steadily.
In comparison, the USD has experienced a more stable history, although in past few years Rand has becoming strong while the USD has been slowly down the bit. Dollar is an international reserve currency, and has guaranteed value. The US is not supported by the gold reserves and this allows the government to print money for easing global economic crisis.
Economists approve that printing more cash can lead to increase in prices, but crisis recovery is more vital than future values. Rate of unemployment is less than 9% in the US. It is a consumer driven culture where most of its population survives on credit to maintain their comfort level instead of adjusting their lifestyle.
It is imperative to get familiar with market sensitivity to trade currencies online, especially USD/ZAR. Using technical analytical tools online, you could earn good money by trading currencies at the right time.
The current quote for USD/ZAR daily spread bet is 76,700 – 77,100. This means 1 US dollar can purchase 7 ½ Rand. For this you can either place a buy (long) or sell (short) bet? In this case, if your prediction is right, you win and vice versa.
Prediction for dollar to rise
If you feel that dollar value will go up against Rand, then you can go for a long stake with USD/ZAR pair, something like £1.40 per point.
For wrong forecast
A daily swing of USD/ZAR pair is 1000 points. You need to be careful to limit your staking amount lest you lose. If the price falls to 76,100 to 76,300 and you close the bid to limit your losses. You could also take assistance of the experts to avoid making any errors.
Prediction for dollar to fall
If you feel dollar prices will go down against Rand, then place a short stake, say about £0.50 per point on USD/ZAR. Thus, you need to explore a little, by investing smaller amount to learn the tricks of trade.
During the last couple of months, Rand has become popular because there is a frequent labour chaos in South Africa’s huge mining sector. This has forced miners to discontinue production.
If the labour union and mining companies resolve their disputes, then ZAR should witness a comeback, particularly because the strike has impacted the nation's exports.