JOHANNESBURG: South Africa’s rand firmed early on Tuesday against a softer dollar on hopes for less aggressive tariffs by US President-elect Donald Trump when he takes office later this month.
At 0636 GMT, the rand traded at 18.5650 against the US dollar, about 0.1% firmer than its previous close.
The greenback last traded about 0.1% weaker against a basket of currencies.
The Washington Post reported on Monday that Trump aides were exploring tariff plans that would represent a marked softening from promises he had made during his 2024 presidential campaign.
South African rand eases in choppy trading
While the news initially weakened the dollar, Trump’s subsequent denial reversed some of the US currency’s declines.
“It helped bolster the ZAR’s performance as it staged a recovery at the start of the first full trading week of the year,” said ETM Analytics in a research note.
South Africa’s benchmark 2030 government bond was slightly firmer in early deals, with the yield down 2.5 basis points to 9.005%.
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