JOHANNESBURG: South Africa’s rand traded stronger early on Friday, capitalising on recent dollar weakness as concerns over US President Donald Trump’s tariffs linger.
At 0745 GMT, the rand traded at 18.1925 against the dollar, about 0.3% firmer than its previous close.
Domestic investors are waiting to see the latest budget balance data due on Friday to gauge the health of Africa’s most industrialised economy, amid local budget disputes and caution after Trump’s announcement of tariffs on automotive imports to take effect from midnight on April 3.
“Should news break that the (coalition government) has made meaningful progress in settling on a budget, the positive sentiment might trigger an even more powerful surge in the ZAR and help it end the week below 18.20/dlr,” said ETM Analytics in a research note.
South African rand edges up, central bank bulletin and PPI due
On the stock market, the Top-40 index was last up 0.6%.
South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 7 basis points to 9.08%.
American Dollar Exchange Rate