STATISTICAL RELATIONSHIP OF AMERICAN DOLLAR INCREMENT ON THE SOUTH AFRICAN RAND OVER THE PAST 12 MONTHS

The importance of the US Dollar to a mono economy and import dependent nation such 

as South Africa cannot be over emphasized in the most notable transactions that takes 

place in any economic process must have a direct or indirect connection with the 

dollars. The aim of the study is to find the relationship between American dollar and 

South African rand. The statistical relationship between inflation and petrol price were 

investigated using secondary data. The correlation coefficient was used to compare the 

relationship between the variables. The coefficient of negative 1 shows a weak negative 

relationship whilst positive 1 shows perfect strong relationship, furthermore the 

coefficient of zero shows no relationship between the variables. From the statistical 

analysis, the correlation coefficients were found to be 0.633956, which means a 

moderate positive relationship between the constant USD and the South African rand