JOHANNESBURG: South Africa’s rand slipped on Tuesday as US President-elect Donald Trump’s tariff threat on its neighbours and China weighed on emerging markets.
At 0805 GMT, the rand traded at 18.17 against the dollar , about 0.6% weaker than its previous close.
On Monday, Trump pledged to impose big tariffs on the US’ three largest trading partners - Canada, Mexico and China - detailing how he will implement campaign promises that could trigger trade wars. Commodity-linked currencies including the rand took a hit following the announcement due to their close links to China.
South African rand slips as dollar climbs on global markets
“China’s role as SA’s largest trading partner puts the country at risk of indirect consequences,” said Andre Cilliers, currency strategist at TreasuryONE.
On the stock market, the Top-40 index was down about 0.3%. South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 6 basis points at 9.005%.
Comments
Comments are closed for this article.