# ZAR/USD Rand Plunges to Record Low After South Africa Interest Rate Hike - Bloomberg

> The South African Reserve Bank raised its policy rate by 50 basis points to 8.25%, the highest since the financial crisis, to curb inflation. The central bank warned that further rand weakness was likely. The rand fell to a record low as the hike raised concerns about growth, which is forecast at only 0.3% this year amid electricity shortages.

- Date: 2023-05-25 · published 2023-05-25T12:00:00.000Z
- Category: macro · region South Africa · magnitude medium
- Page: https://feedsoft.ai/events/36244-zar-usd-rand-plunges-to-record-low-after-south-africa-interest-rate-hike
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Tighter policy and weaker growth in South Africa reduce domestic demand for feed and food inputs, while a weaker rand raises the local cost of dollar-priced imports. Both effects shift South African feed purchasing power.

## Read by commodity

- USDZAR: bullish ▲

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2023-05-25/south-africa-rate-hike-fails-to-stop-rand-slumping-to-record-low

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.