JOHANNESBURG (Reuters) -The rand was flat for much of Friday’s trading session as traders weighed the South African Reserve Bank’s decision to keep interest rates unchanged and efforts to roll back steep U.S. tariffs on imports from South Africa.
At 1504 GMT, the rand traded at 17.34 against the dollar, a whisker away from its previous close.
South Africa’s central bank on Thursday left its key lending rate at 7% in a tight decision, holding off on easing monetary policy further while it assesses the impact of previous rate cuts.
Although economists polled by Reuters expected no change in rates, some analysts had thought that the central bank would cut rates after headline inflation in Africa’s most industrialised economy unexpectedly slowed in August.
Investors will also keep an eye on tariff updates after South African Trade Minister Parks Tau met U.S. Trade Representative Jamieson Greer for talks.
Tau’s office said in a statement the meeting between the officials was cordial and constructive.
U.S. President Donald Trump imposed a 30% tariff on imports from South Africa last month after President Cyril Ramaphosa’s government made several unsuccessful attempts to secure a trade agreement.
The tariff rate on South African imports is the highest in Sub-Saharan Africa and could cause tens of thousands of job losses.
The economic calendar next week features business cycle leading indicator figures on Tuesday and producer inflation data on Thursday.
On the Johannesburg Stock Exchange, the Top-40 index was up 0.7%.
South Africa’s benchmark 2035 government bond gained as the yield fell 1.5 basis points to 9.165%.
(Reporting by Sfundo Parakozov and Anathi Madubela;Editing by Alexandra Hudson and Elaine Hardcastle)
