Market News
South African rand gains amid unease over Trump’s tariff plans - REUTERS
BY Sfundo Parakozov
JOHANNESBURG, March 26 (Reuters) – South Africa’s rand edged higher early on Wednesday, as investors mulled over U.S. President Donald Trump’s reciprocal tariff plans which they fear will cause an economic slowdown.
At 0707 GMT, the rand traded at 18.25 against the dollar, about 0.2% stronger than its previous closing level.
The dollar =USD was little changed against a basket of currencies.
Investors feared that Trump’s reciprocal tariffs, expected to take effect on April 2, are likely to be inflationary, potentially slowing economic growth and intensifying trade tensions.
However, Trump said on Monday that not all of his threatened duties would be imposed next week and some countries may get breaks.
“Increasingly, one gets the sense that the US economy is slowing and that the Trump administration does not want to exacerbate a downturn through the harsh imposition of tariffs,” ETM Analytics said in a research note.
Like other risk sensitive currencies, the rand often takes cues from global drivers like U.S. policies and economic data, in the absence of major local drivers.
On the stock market, the Top-40 index was up about 0.1%.
South Africa’s benchmark 2030 government bond was marginally stronger in early deals, with the yield down 0.5 basis point to 9.14%.
(Reporting by Sfundo Parakozov; Editing by Bhargav Acharya and Andrew Heavens)
