RAND WEAKENS AS GLOBAL TRADE TENSIONS SAP RISK APPETITE

JOHANNESBURG- The rand weakened against the dollar early on Wednesday as US-China trade tensions has sparked market fears that the standoff between the world’s two largest economies could go into a full out trade war that could crash the global growth rates.

Early in the morning, the rand traded at R11,8600 per dollar, o,3% weaker overnight.

American US Donald Trump announced that they will impose 25% tariffs on $50 Billion of annual imports from China. The tariffs impose companies such as industrial technology, transport and medical products, about 1300 of them.

China’s Commerce ministry said they are considering countermeasures of equal severity.

A Nedbank analyst said, “Global trade tensions continue to weigh on risk appetite, and until common ground is found safe-haven demand would remain as the best form of defence.”

Photo Credit- EWN

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