Rand weakens as US tariff threats fuel global growth concerns
Washington threatened to impose tariffs on $4bn worth of EU goods due to a dispute over aircraft subsidies
02 July 2019 - 10:28
byOdwa Mjo
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The rand had weakened on Tuesday morning as the US’s tariff threats against the EU spark concern of a global economic slowdown.
On Monday, the US threatened to impose tariffs on $4bn worth of EU goods due to a dispute over aircraft subsidies. The US Trade Representative said olives, Italian cheese and Scotch whisky could be hit with tariffs, Reuters reported.
The threats come just days after the US and China agreed to resume trade negotiations, with the former party agreeing to halt the imposition of more tariffs on Chinese goods.
At 10.09, the rand had weakened 0.42% to R14.1923/$, 0.47% to R16.0249/€ and 0.26% to R17.915/£. The euro was flat at $1,1292.
The benchmark R186 government bond was weaker, with the yield rising 6.5 basis points to 8.17%. Bond yields move inversely to bond prices.
Gold had gained 0.6% to $1,392.25/oz and platinum 0.35% to $835.21. Brent crude had fallen 0.18% to $65.04 a barrel.
No major economic data is expected on the local front on Tuesday. The eurozone producer price index figures for May and the UK’s construction purchasing managers index for June are due later in the day.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Rand weakens as US tariff threats fuel global growth concerns
Washington threatened to impose tariffs on $4bn worth of EU goods due to a dispute over aircraft subsidies
The rand had weakened on Tuesday morning as the US’s tariff threats against the EU spark concern of a global economic slowdown.
On Monday, the US threatened to impose tariffs on $4bn worth of EU goods due to a dispute over aircraft subsidies. The US Trade Representative said olives, Italian cheese and Scotch whisky could be hit with tariffs, Reuters reported.
The threats come just days after the US and China agreed to resume trade negotiations, with the former party agreeing to halt the imposition of more tariffs on Chinese goods.
At 10.09, the rand had weakened 0.42% to R14.1923/$, 0.47% to R16.0249/€ and 0.26% to R17.915/£. The euro was flat at $1,1292.
The benchmark R186 government bond was weaker, with the yield rising 6.5 basis points to 8.17%. Bond yields move inversely to bond prices.
Gold had gained 0.6% to $1,392.25/oz and platinum 0.35% to $835.21. Brent crude had fallen 0.18% to $65.04 a barrel.
No major economic data is expected on the local front on Tuesday. The eurozone producer price index figures for May and the UK’s construction purchasing managers index for June are due later in the day.
mjoo@businesslive.co.za
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