JOHANNESBURG (Reuters) -South Africa’s rand edged higher on Tuesday as markets digested U.S. President Donald Trump’s changing tariff stance.
At 1518 GMT, the rand traded at 18.68 against the dollar, about 0.2% stronger than Monday’s close. The dollar last traded about 0.4% weaker against a basket of currencies.
Trump on Monday suspended his threat of steep tariffs on Mexico and Canada, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighbouring countries.
The U.S. imposed tariffs on Chinese imports on Tuesday and China quickly responded.
The rand traded turbulently on Monday, slumping almost 2% in early trade on news that Trump would suspend funding to South Africa over land rights, but staged a recovery later to close roughly flat.
“What we are seeing is that Trump is looking for concessions, while he negotiates,” Adam Phillips, treasury specialist at Umkhulu Treasury, said about the tariffs turmoil.
“What is clear is that a risk premium is being added into the foreign exchange market and this is going to be around for a while.”
On the stock market, the Top-40 index closed about 1.1% higher.
South Africa’s benchmark 2030 government bond was stronger, with the yield down 5.5 basis points to 9.09%.
(Reporting by Tannur Anders and Bhargav Acharya; Editing by Sumana Nandy and Alison Williams)
