EUR/ZAR

As it does not include the US Dollar, the EUR to ZAR pair is regarded as an exotic currency pair. In this trading instrument, the value of one Euro (EUR) is given in South African Rand (ZAR). It is often prone to volatility due to the many factors that can impact the EUR to ZAR rate. It does mean, however, that traders can capitalize on this pair’s profit-making potential.

ZAR first entered circulation in February 1961, just before South Africa became an independent republic. It replaced the South African Pound, which was aligned to the British Pound due to the country’s Dominion status within the British Empire. In its first two decades, the Rand traded at a value of US$1.40. But its value started to decline amid growing diplomatic pressure in 1982.

Even after the country emerged from political isolation in the early 1990s, the value of the Rand continued to depreciate on the global forex market. The weakening of the Rand saw its value go from R3 against USD in 1992 to a record R13.84 after the September 11, 2001 attacks. While it has since stabilized, the Rand remains prone to major volatility if trading the EUR to ZAR pair.

This volatility is what makes the Rand popular with forex investors, however. It is one of the 20 most-traded currencies, according to research from the Bank for International Settlements. The Euro, in contrast, has become a dominant force on the global market. It is now a major reserve currency and is the second largest by trading volume after the US Dollar.

As one of South Africa’s main exports, the price of gold can be a noticeable driver in the EUR to ZAR rate. The value of the Rand often correlates with the price of gold on the world market. For traders who wish to add this pair to their portfolio, it is advisable to analyze the current state of the market first. But gold is not the only commodity to have a bearing on the EUR to ZAR pair.

South Africa is also a major exporter of diamonds and platinum. The national economy benefits from increasing demand and prices, but it is not free from challenges. Inflation, unemployment and industrial action are concerns and can impact the EUR to ZAR rate. The Rand’s value is also exposed to economic turbulence in China and the Eurozone – South Africa’s main export markets.

With South Africa’s global trading connections, it is also worth investors being aware of external developments that could affect demand. The US-China trade deal is one example that could fuel movements in the value of the Rand and increase volatility with the EUR to ZAR pair.

For traders analyzing the Eurozone for its impact on the EUR to ZAR rate, key indicators include GDP growth, employment figures and inflation rates. But, as a macro-economic zone, stability is at risk from economic issues emerging from constituent nations. The Eurozone debt crisis of the early 2010s is one example and something that can influence trading in the EUR to ZAR rate.

This EUR to ZAR chart displays the value of one Euro against the South African Rand. Investors with an interest in the EUR to ZAR pair can view real-time data from mid-market rates that are calculated by our unique pricing engine. It enables traders to make informed decisions and see how this currency pair is performing. Please note – it is not a guarantee of future movements.