U.S. President Donald Trump announced a 90-day suspension of tariffs on several countries, including South Africa, which quickly affected global markets.

On April 10, the South African rand strengthened by 0.4%, trading at 19.25 against the U.S. dollar.

This recovery came after the rand hit a record low of 19.9325 the day before, when the U.S. imposed tariffs on specific countries.

The tariff pause brought some relief to investors, easing worries about ongoing trade tensions.

However, the rand’s instability has been further affected by local political issues.

A recent budget vote sparked a legal challenge, raising concerns about the future of South Africa’s ruling coalition, especially after the Democratic Alliance, the country’s second-largest party, voted against key budget laws.

Even with the positive reaction in the currency market, investors in South Africa remain cautious.

They are waiting for the release of domestic manufacturing data later today to gain better insights into the country’s economic health.

Meanwhile, most U.S. tariffs are still in place, with a 10% blanket duty on many imports.

Trump’s decision to pause the tariffs, combined with South Africa’s political challenges, continues to influence investor sentiment.

The near future of the rand and South Africa’s economy remains uncertain, and everyone is waiting for the next set of economic data and political developments.