South African rand jumps as markets ponder US tariffs

JOHANNESBURG – South Africa’s rand gained on Monday as investors awaited clarity on the next round of tariffs from U.S. President Donald Trump.

At 1413 GMT, the rand traded at 18.1275 per dollar, about 0.5% stronger than its previous close.

“The rand is gaining support from uncertainty surrounding U.S. tariff developments and elevated gold prices,” said Zain Vawda, market analyst at MarketPulse by OANDA.

Vawda said markets will likely maintain their current trajectory until there is more clarity on the Trump administration’s proposed universal tariffs.

While the rand has gained about 4% against the dollar this year, trade in the local currency has often been volatile as both domestic and international factors weigh.

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South Africa’s central bank kept its main interest rate unchanged last week despite cooling inflation amid risks stemming from Trump’s global trade war and the country’s deadlocked national budget.

The next round of tariffs is due on April 2, when the White House will announce reciprocal levies on many countries.

“There is a possibility of volatile moves for the rand as more tariff chatter arrives during the course of the week,” Vawda said.

On the stock market, the Top-40 index was last down about 0.5%.

South Africa’s benchmark 2030 government bond was weaker, with the yield up 6.5 basis points to 9.125%. (Reuters_