South Africa’s rand weakened early Tuesday as investors awaited local gross domestic product (GDP) data and assessed the potential impact of U.S. President Donald Trump’s latest tariffs.
By 0715 GMT, the rand traded at 18.64 against the U.S. dollar, about 0.3% weaker than its previous close. Meanwhile, the dollar edged slightly lower against a basket of global currencies.
On Monday, Trump announced that 25% tariffs on Canada and Mexico would take effect Tuesday, with reciprocal tariffs set to begin on April 2.
In South Africa, fourth-quarter GDP figures—scheduled for release at 0930 GMT—are expected to provide key insights into the health of Africa’s most industrialized economy. Economists polled by Reuters forecast a 0.9% expansion (ZAGDPN=ECI).
“A stronger (GDP) print could support ZAR (the rand), but budget concerns remain a risk factor,” said Andre Cilliers, currency strategist at TreasuryONE. He pointed to ongoing uncertainty over the national budget, which was postponed last month due to a lack of consensus within the ruling coalition.
On the Johannesburg Stock Exchange (JSE), the blue-chip Top-40 index (.JTOPI) last traded down about 0.7%.
South Africa’s benchmark 2030 government bond had little change in early trading, with the yield at 9.085%.