Market News
South African rand weaker ahead of local GDP data, Trump tariffs in focus - REUTERS
BY Sfundo Parakozov
JOHANNESBURG, March 4 (Reuters) – South Africa’s rand weakened early on Tuesday ahead of local gross domestic product (GDP) figures and as investors braced for the impact of U.S. President Donald Trump’s tariffs.
At 0715 GMT, the rand traded at 18.64 against the U.S. dollar, about 0.3% weaker than its previous close.
The dollar last traded slightly weaker against a basket of currencies.
Trump said on Monday that 25% tariffs on Canada and Mexico will go into effect on Tuesday with reciprocal tariffs starting April 2.
Domestically-focussed investors will look to fourth quarter GDP figures at 0930 GMT for clues on the health of Africa’s most industrialised economy.
Economists polled by Reuters forecast an expansion of 0.9%.
“A stronger (GDP) print could support ZAR (the rand), but budget concerns remain a risk factor,” said Andre Cilliers, currency strategist at TreasuryONE, referring to the ruling coalition’s lack of consensus on the national budget which led to its postponement last month.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded down about 0.7%.
South Africa’s benchmark 2030 government bond was little changed in early deals, with the yield at 9.085%.
(Reporting by Sfundo Parakozov; Editing by Tannur Anders and Andrew Heavens)
