JOHANNESBURG: The South African rand strengthened on Friday after U.S. President Donald Trump said he planned to impose reciprocal tariffs on countries taxing U.S. imports, and as investors awaited a domestic budget next week.
At 1503 GMT, the rand traded at 18.32 against the dollar , about 0.9% stronger than its previous close.
Trump on Thursday tasked his economics team with planning for reciprocal tariffs on every country taxing U.S. imports, ramping up prospects for a global trade war.
South African rand stable as markets await Trump’s new tariffs
Concerns of a trade war lifted gold prices, which were poised for a seventh consecutive weekly gain. The surge in prices of the safe-haven asset is supportive of the South African currency, ETM Analytics said in a research note.
ETM Analytics said the only major constraint to any directional move is South African Finance Minister Enoch Godongwana’s budget speech next week and the guidance he will offer investors.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed about 1.1% higher.
South Africa’s benchmark 2030 government bond was also stronger, with the yield down 6.5 basis points to 9.10%.
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