JOHANNESBURG- The rand did slip early on Thursday as the global trade market is experiencing a trade war that has been sparked by US President Donald Trump plan to tariffs weighed on emerging market currencies, particularly commodity exporters.
At 0640 GMT, the rand had weakened by 0.27% to R11.8675 per dollar, marking a second straight session of losses, as investors feared a selloff, demand slowed for one of the best performing currencies globally.
A high ranking economic aide to Trump part ways with his administration, which renewed fears of a global trade war and taken off the shine of unexpectedly positive local economic growth figures.
After the election of new president Cyril Ramaphosa, the economy has been on a high, fueling bets that the currency will stretch gains if it breaks through technical resistance at R11.70.
The yield for the benchmark government bond, the fixed income due in 2026 is flat 8.12%.
Photo Credit- The South African
Leave a Reply