Rand falls to 6-1/2 month low as global trade war escalates
The currency has surrendered all of the gains it made since President Cyril Ramaphosa was elected head of the ANC.
JOHANNESBURG - South Africa’s rand fell to 6-1/2 month lows early on Tuesday as US President Donald Trump threatened new tariffs in an escalating tit-for-tat trade war with China, hitting sentiment in emerging markets.
At 0705 GMT, the rand was 1.65% weaker at 13.875 to the dollar, its lowest since the start of December, surrendering all of the gains it made since President Cyril Ramaphosa was elected head of the ruling ANC.
Technically, the rand could be in for a rebound as momentum indicators tracked by chartists show it has now been thrust deeply into oversold territory. In fixed income, the yield for the benchmark government bond due in 2026 was up 6 basis points to 9.16%.