This week, the USD/ZAR exchange rate rose again as the US dollar index went up and the South African election drew closer. The pair initially fell to 18.40 and then rose to 19.

South Africa saw positive economic indicators this week. The central bank reported an increase in foreign reserves to $62.32 billion in March. Higher reserves help a country deal with currency devaluation. FX reserves also saw a rise to $57.5 billion.

Business confidence in South Africa went up to 114.7 in February, leading to more hiring and investment. Mining production also grew by 9.9% in February, exceeding expectations. Similarly, manufacturing production rose by 4.1% in February.

Even with these positive numbers, inflation in South Africa has hit a four-month high, causing concerns. The USD/ZAR pair rebounded due to the strong US dollar index, which reached $106.

The strong economic data from the US, including over 300k new jobs created in March and a low unemployment rate, led to speculation about interest rate hikes instead of cuts by the Fed. The inflation rate in the US also raised expectations regarding rate hikes.

Looking at the technical analysis of USD/ZAR, the exchange rate has been volatile and remained within certain levels. The pair formed a symmetrical triangle pattern, indicating a potential move. The outlook for the USD to rand is slightly bullish, with the next target at 19.15.