Rand wobbles as global trade war jitters resurface, hitting global markets
Donald Trump is turning up the heat on China by proposing to increase tariffs from the initial 10% to 25% on $200bn worth of China’s goods
The rand limped along in midmorning trade on Thursday, battling to recover from a setback attributed to the ANC’s surprise decision to seek to change the Constitution to expropriate land without compensation. Earlier in the week, the rand rallied to its best level to the dollar in about two months to R13.07/$ before sliding to lows of R13.39/$ by Wednesday morning, as markets digested the implications of the resolution by the governing party. Two weeks ago, the South African Reserve Bank held interest rates steady, citing rising inflation, which resulted from high fuel prices, which in turn, was partly a function of a weaker rand. Several other factors were in the mix on Thursday, including a relatively stronger dollar, which stood tall against a basket of currencies after the US Federal Reserve painted a good a picture of the US economy, implying that it would continue on its interest rate-hiking cycle. Rand Merchant Bank analyst Nema Ramkhelawan-Bhana said the key message was that...
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