The South African rand rose against a weakening U.S. dollar on Wednesday, as traders continued to react to last week’s underwhelming U.S. jobs data and awaited developments on potential tariff changes ahead of a Washington deadline.
By 14:51 GMT, the rand was trading at 17.80 to the dollar, up about 0.5% from Tuesday’s close.
A key issue for South Africa this week is whether it can secure improved trade terms, as it currently faces a 30% duty on exports to the U.S., the highest among Sub-Saharan African nations.
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The U.S. dollar was down 0.3% against a basket of major currencies, with investors holding back on significant moves due to the disappointing July employment report and uncertainty around U.S. President Donald Trump’s upcoming decisions on the Federal Reserve, according to Reuters.
Trump said on Tuesday he would soon name a replacement for Fed Governor Adriana Kugler, who resigned on Friday, as well as announce his nominee for the next Fed chair.
“The USD is losing its exceptionalism and is steadily finding itself on the defensive, allowing other currencies to make up lost ground,” ETM Analytics wrote in a research note.
On the equities front, the Johannesburg Stock Exchange’s Top-40 index rose 0.5%, while the broader All-share index gained 0.4%.
South Africa’s benchmark 2035 government bond remained mostly flat, with the yield inching up by half a basis point to 9.68%.
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Image Credit: Reuters
