Rand on the back foot as global tension casts shadow on emerging markets
The rand was about 0.8% weaker against the dollar on Monday afternoon as the latter clawed back some lost ground against the euro. The dollar lost traction at the end of last week following US President Donald Trump’s criticism of the US Federal Reserve’s rate-increasing cycle. Optimists in the market had hoped that the weaker dollar would support higher-yielding currencies such as the rand, but the Group of 20 (G-20) meeting among finance ministers and central bank governors at the weekend in Argentina, highlighted the risks of further trade tension undermining the global economy. Earlier, Trump intimated the US would impose additional tariffs on a further $500bn of Chinese imports. There was still an air of uncertainty amid continuing trade tension, especially following Trump’s comments late last week that he could impose further tariffs on China, said FXTM analyst Jameel Ahmad. "The social media tweet early this morning directed at Iran, is likely to cause further pressure on glo...
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