# Only time will tell if the undervalued rand will trend stronger - Moneyweb

> A Moneyweb commentary argues the rand is undervalued and that its weakness this quarter reflects the strong US dollar more than domestic problems. The piece says the dollar has strengthened about 5% since the start of Q3 and that US rates may rise toward 4%.

- Date: 2022-08-26 · published 2022-08-26T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/40330-only-time-will-tell-if-the-undervalued-rand-will-trend-stronger-moneyweb
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

The analysis points to continued dollar strength and higher US rates as the main drivers of rand weakness, which keeps South African import costs for feed inputs elevated.

## Read by commodity

- DXY: bullish ▲
- USDZAR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-02-28 | [Rand pressured by a stronger US dollar - Moneyweb](https://feedsoft.ai/events/37617-rand-pressured-by-a-stronger-us-dollar-moneyweb.md) | -0.7% | -0.9% |
| DXY | 2023-10-31 | [Rand weakens against stronger dollar; focus on mid-term budget - Moneyweb](https://feedsoft.ai/events/33915-rand-weakens-against-stronger-dollar-focus-on-mid-term-budget-moneyweb.md) | -1.4% | -2.9% |
| DXY | 2017-09-28 | [What’s behind the rand selloff? - Moneyweb](https://feedsoft.ai/events/69234-what-s-behind-the-rand-selloff-moneyweb.md) | +0.2% | +1.4% |
| DXY | 2022-04-28 | [Rand pressured by strong dollar - Moneyweb](https://feedsoft.ai/events/42125-rand-pressured-by-strong-dollar-moneyweb.md) | +0.1% | -0.4% |
| DXY | 2018-09-27 | [Rand falls in early trade, focus on Mining Charter - Moneyweb](https://feedsoft.ai/events/63337-rand-falls-in-early-trade-focus-on-mining-charter-moneyweb.md) | +0.4% | +1.6% |

## Sources

- moneyweb.co.za: https://www.moneyweb.co.za/news/markets/only-time-will-tell-if-the-undervalued-rand-will-trend-stronger/

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