JOHANNESBURG: South Africa’s rand firmed in early trade on Thursday, recouping some of its recent loss as investors took a breather after U.S. President Donald Trump announced an immediate 90-day tariff pause for many countries.
At 0631 GMT, the rand traded at 19.25 against the U.S. dollar, about 0.4% stronger than its previous close.
The local currency hit a record low of 19.9325 on Wednesday, the day Trump’s country-specific import tariffs kicked in.
Trump said he would temporarily lower tariffs imposed on dozens of countries including South Africa but kept a 10% blanket duty on almost all U.S. imports.
In addition to Trump’s tariffs, local politics have also weighed on the risk-sensitive rand, after a contentious budget vote last week threatened the future of the ruling coalition.
South African rand nears all-time low on tariff turmoil and coalition tension
The second-biggest party in the coalition, the pro-business Democratic Alliance, voted against key legislation in the budget and challenged the budget process in court.
South Africa-focused investors on Thursday will look out for February domestic manufacturing data due at 1100 GMT for clues on the health of the economy.
Benchmark 2030 government bonds were stronger in early deals, with the yield down 15.5 basis points at 9.15%.
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