JOHANNESBURG (Reuters) -The South African rand was steady in early trade on Wednesday, with investor focus still pinned on tariff updates before Washington’s deadline.
At 0724 GMT, the rand traded at 17.88 against the dollar, barely changed from Tuesday’s close.
“The rand is trading below the R17.90 level this morning as it continues to recover from Monday’s tariff-driven blowout and strong dollar,” said Andre Cilliers, currency strategist at TreasuryONE.
This week’s major focus for the country is whether it can negotiate a better trade pact as it faces a 30% duty on goods exported to the U.S., the highest rate among Sub-Saharan African countries.
The dollar last traded flat against a basket of currencies as investors held back from making big bets ahead of U.S. President Donald Trump’s decision on appointments to the Federal Reserve.
Trump on Tuesday said he would soon announce a short-term replacement for Fed Governor Adriana Kugler, who announced her resignation on Friday, as well as his pick for the next Fed chair.
“The USD is losing its exceptionalism and is steadily finding itself on the defensive, allowing other currencies to make up lost ground,” said ETM Analytics in a research note.
The Johannesburg Stock Exchange’s Top-40 index was up 0.6%
South Africa’s benchmark 2035 government bond was weaker in early deals, as the yield rose 3 basis points to 9.705%.
(Reporting by Sfundo Parakozov; Editing by Sharon Singleton)
