JOHANNESBURG, Feb 10 (Reuters) – South Africa’s rand was little changed on Monday after U.S. President Donald Trump announced more tariff plans, adding to worries over a global trade war.
At 1543 GMT, the rand traded at 18.42 against the U.S. dollar , near its Friday closing level of 18.4275.
Trump said on Sunday he would introduce 25% tariffs on all steel and aluminium imports into the U.S., on top of existing metals duties.
“The South African rand is likely to face pressure from President Trump’s proposed tariffs on aluminium and steel,” Zain Vawda, market analyst at MarketPulse by OANDA, said.
“A drop in U.S. demand could reduce export revenues, with emerging market currencies like the rand remaining sensitive to tariff developments and shifts in market sentiment.”
Analysts said South Africa may face further risks after Trump signed an executive order cutting U.S. financial assistance to the country on Friday, citing disapproval of its land policy and of its genocide case at the International Court of Justice against Washington’s ally Israel.
South Africa’s sovereign dollar bonds were trading flat or slightly higher by 1508 GMT, reversing small early losses, but weak compared to bigger gains for most other African sovereigns, including Angola, Kenya, Ivory Coast and Nigeria.
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South Africa’s benchmark 2030 government bond was weaker, with the yield up 3.5 basis points to 9.1%.
On the stock market, the Top-40 (.JTOPI), opens new tab index closed up about 0.4%.
Domestic investors will on Tuesday look to December manufacturing figures (ZAMAN=ECI), opens new tab for clues on the health of Africa’s most industrialised economy.
Reporting by Tannur Anders and Sfundo Parakozov; Additional reporting by Libby George; Editing by Bhargav Acharya, Hugh Lawson, Sharon Singleton, Gareth Jones and Barbara Lewis
