South Africa’s rand gained slightly on Wednesday morning as investors weighed the potential impact of U.S. President Donald Trump’s planned reciprocal tariffs, which have sparked concerns about a global economic slowdown.
By 0707 GMT, the rand was trading at 18.25 per dollar, reflecting a 0.2% increase from its previous close. Meanwhile, the U.S. dollar remained relatively stable against a basket of major currencies.
Market sentiment remained cautious as investors worried that Trump’s tariffs—set to take effect on April 2—could fuel inflation, dampen economic growth, and escalate global trade tensions.
However, in a statement on Monday, Trump reassured markets that “not all of his threatened duties would be imposed next week” and that “some countries may get breaks,” leaving room for possible exemptions or delays.
“Increasingly, one gets the sense that the US economy is slowing and that the Trump administration does not want to exacerbate a downturn through the harsh imposition of tariffs,” ETM Analytics said in a research note.
Like other risk-sensitive currencies, the rand often reacts to global developments such as U.S. economic policies and data, especially when domestic factors offer little direction.
On the stock market, the Top-40 Index (.JTOPI) edged up by about 0.1% in early trading.
Meanwhile, South Africa’s benchmark 2030 government bond showed slight improvement, with the yield dipping 0.5 basis points to 9.14%.
