The rand was almost 2% weaker against the dollar on Tuesday morning, as the trade spat between the US and China escalated, casting a shadow over the global economic outlook. The latest slide took the rand dangerously close to R14/$ — levels last visited late in November — showing its vulnerability to shifts in global risk perceptions. The rand is now the worst-performing currency among its emerging-market peers in the second quarter, behind the Brazilian real, Turkish lira and Argentinean peso. The weaker rand fuels inflation as it pushes up the cost of imported goods, although exporters tend to benefit as the weaker currency boosts their competitiveness. US President Donald Trump’s "America First" pledge played out negatively again on global markets, hitting stocks and emerging-market currencies in particular. On Monday, Trump threatened to impose additional tariffs on Chinese imported goods. This is over and above the $50bn worth of Chinese goods, which will be subject to tariffs ...
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