Rand Up Against Dollar Amidst Tariff Threats Facing South Africa
In the global forex market, the rand (ZAR) strengthened against the US dollar (USD) amidst renewed tariff threats facing South Africa.
The South African government is facing an extra tariff threat from the US as a member of BRICS, a group of major emerging economies consisting of Brazil, Russia, India, China, and South Africa.
These countries are promoting collective interests in various areas, including economics, politics, and social development, amidst plans to decouple from the US dollar’s dominance as a global currency.
On Tuesday, the rand traded at 17.7775 against the dollar, 0.7% firmer than Monday’s close.
At the beginning of the week, the South African rand slid slightly to 17.9 per US dollar but held near recent lows last seen on June 20, amid the dollar’s strength following the latest Trump’s tariff threats.
President Donald Trump on July 12 targeted Mexico and the European Union with steep 30% tariffs. The new threats came after a series of announcements last week that included warnings of a possible 50% levy on all copper imports and all goods from Brazil.
Trump is placing 35% levies on Canadian goods and a possible 200% tariff on imported pharmaceuticals. Meanwhile, South Africa also faces the prospect of a 30% trade tariff on its exports to the United States as well as an additional 10% levy because of its membership in the Brics group of developing nations.
In South Africa, domestic investors will look to May retail sales data on Wednesday for further clues into the health of the continent’s most industrialized economy. #Rand Up Against Dollar Amidst Tariff Threats Facing South Africa#
