South African rand steady as traders mull new US tariffs, fragile Gulf ceasefire
- The rand traded at 16.3225 against the dollar , a whisker away from its previous close
JOHANNESBURG: The rand was steady in early trade on Thursday as investors weighed proposed US tariffs linked to forced labour and tracked developments in the Gulf.
South Africa’s trade ministry said the country remains compliant with all domestic and international obligations on forced labour, after Washington proposed tariffs on imports from about 60 countries, including South Africa, over the issue.
At 0746 GMT the rand traded at 16.3225 against the dollar , a whisker away from its previous close.
“From a South African perspective, the proposed 12.5% tariff is negative but still a material improvement on the earlier 30% ‘Liberation Day’ tariff threat,” said ETM Analytics in a research note.
The proposal follows a Section 301 unfair trade practices investigation as the Trump administration seeks to rebuild emergency tariffs struck down by the Supreme Court in February.
Like other risk-sensitive currencies, the rand tends to follow global drivers in the absence of major domestic data.
The U.S. dollar was flat against a basket of currencies, while oil prices fell on Thursday as a ceasefire deal between Israel and Lebanon boosted hopes for a broader agreement to end the U.S.-Israeli war with Iran that could lead to a reopening of the Strait of Hormuz.
The Republican-led US House of Representatives approved a resolution to block President Donald Trump from continuing the war against Iran, reflecting growing concern among members of his party about the three-month-old conflict.
On the Johannesburg Stock Exchange, the Top-40 index was flat in early trade.
South Africa’s benchmark 2035 government bond weakened, with the yield rising 4 basis points to 8.525%.
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