South African rand gains even as ties with US plumb new lows
JOHANNESBURG, March 17 (Reuters) - The rand firmed on Monday against a weaker dollar, as market participants appeared to shrug off the United States' decision late last week to expel South Africa's ambassador in yet another sign of the two countries' rapidly souring relations.
At 1501 GMT, the rand traded at 18.11 against the dollar , about 0.4% stronger than its previous close.
The dollar last traded about 0.3% weaker against a basket of currencies as markets await the Federal Reserve's interest rate decision on Wednesday amid uncertainty over President Donald Trump's tariff policies and muted economic data.
U.S.-South Africa ties have deteriorated since Trump's return to the White House in January.
U.S. Secretary of State Marco Rubio announced Ambassador Ebrahim Rasool's expulsion in a post on X on Friday, citing an article in which Rasool was quoted as saying that Trump was leading a white supremacist movement.
South Africa called Rasool's expulsion regrettable and said it was committed to building mutually beneficial relations.
Analysts, however, said interactions with the Trump administration were already tense before the latest spat and expressed confidence the sides would mend ties due to the strategic value of their trade.
South Africa supplies many critical minerals to the U.S. while it benefits from preferential access to U.S. markets under the U.S. African Growth and Opportunity Act.
"The U.S. still relies on SA's key minerals (chrome, platinum, manganese, vanadium), which means a total breakdown is unlikely," said Andre Cilliers, currency strategist at TreasuryONE.
"Instead, the Trump administration is expected to favour bilateral negotiations for new trade terms."
Later this week, investors' focus will shift to local inflation data (ZACPIY=ECI), opens new tab due to be released on Wednesday and an interest rate decision (ZAREPO=ECI), opens new tab on Thursday.
Negotiations between political parties over this year's deadlocked budget could also move markets.
The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab closed about 0.7% higher. The benchmark 2030 government bond was marginally stronger, with the yield down 0.5 basis points at 9.16%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
21 minutes ago
- The Independent
Federal appeals court temporarily reverses decision on Trump's tariffs
A federal appeals court has ruled that President Trump's tariffs will remain in effect during the appeal process, temporarily reversing a lower court's decision. The decision applies to broad-based tariffs affecting most U.S. trading partners, as well as duties on imports from Canada, China, and Mexico. The court has not yet ruled on the legality of Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs, but will hear arguments on July 31. A lower court previously ruled that Trump had overstepped his authority, stating that the Constitution grants Congress the power to impose taxes and tariffs. The tariffs have created turbulence for global markets and American businesses, but the ruling does not impact tariffs implemented under separate legal frameworks, such as those on steel and aluminum.
Reuters
44 minutes ago
- Reuters
Rising Asia temperatures bode well for US LNG export prospects
LITTLETON, Colorado, June 11 (Reuters) - U.S. exports of LNG are already at record highs so far in 2025, but forecasts for above-average temperatures across key Asian import markets could lift them even higher this summer. Average temperatures for Japan, South Korea and China are all forecast to hold above normal through the end of August, likely boosting use of power-hungry air conditioners. That higher demand load will in turn spur utilities to lift generation from all available sources, including from natural gas plants fed mainly by imported liquefied natural gas (LNG). That upbeat demand outlook is good news for U.S. LNG exporters, who are riding a wave of strong demand from Europe but face a potential slowdown in European buying this summer. Temperatures across East Asia are already hovering above long-term averages, and are expected to continue trending higher over the next two months. Average temperatures in Japan - the second largest LNG importer after China in 2024 - are expected to register around 6% above the long-term average from now through the end of August, data from LSEG shows. South Korea, Taiwan, Hong Kong and several cities in China are forecast to register similar readings. As the northern hemisphere summer coincides with the rainy season across much of Asia, the forecasted hot temperatures are likely to be mixed with high humidity levels. That in turn will likely spur heavy use of air conditioning systems, which can push power demand levels sharply higher during heatwaves and strain regional power grids. Asia's electricity producers are used to the summer climb in electricity demand and adjust output levels accordingly. In 2024, average electricity demand during June, July and August - the hottest months of the year - was around 9% above the monthly average for the year as a whole. To accommodate that higher load, utilities lifted output from all power sources, but especially from fossil fuel plants which supply power that can be dispatched on command when output from renewable sources drops off. Both gas-fired and coal-fired generation across Asia during June, July and August last year averaged around 5% more than the 2024 monthly average, Ember data shows. To feed the higher demand for power anticipated during June, July and August, Asian LNG importers tend to book higher LNG volumes during May, June and July than during other months. Between 2021 and 2024, U.S. LNG exports to Asia during May, June and July averaged around 7.8 million metric tons a month, according to data from commodity intelligence firm Kpler. That compares to an average of 2.23 million tons a month to Asia overall for the 2021 to 2024 period, and underscores how important LNG is as a power fuel during the Asian summer. A key driver of potential Asian purchases will be the price of LNG, which needs to compete with coal in power generation and has recently proved too dear for many Asian consumers. U.S. LNG export prices have averaged around $8.54 per thousand cubic feet so far in 2025, up 35% from the 2024 average, according to data from LSEG. That said, any rise in Asian LNG purchases would likely come just as LNG orders by Europe tend to retreat to their annual lows, which could apply downward pressure to prices. Over the first half of 2025, European markets accounted for 70% of all U.S. LNG exports, Kpler data shows, while Asian markets accounted for just under 20%. Average monthly volumes of U.S. LNG dispatched to Europe during January to June were around 6 million tons, compared to around 1.6 million tons a month to Asia. A key caveat that will govern Europe's LNG appetite going forward is how quickly gas storage operators there want to replenish inventories, which were depleted over the past winter and must be restocked ahead of next winter. Currently, Europe's gas stockpiles are around half full, which compares to around 70% full at this time of year in 2023 and 2024, according to LSEG. If gas storage operators opt to restock as quickly as possible, then Europe's imports of LNG could remain quite strong over the coming months. But if Europe's storage firms opt instead to wait until the autumn to replenish stocks, or refill tanks from pipelined supplies, then Europe's LNG purchase volumes could drop sharply. Such a sudden wilt in European orders would likely trigger an aggressive markdown in prices, however, and in turn lure fresh buying interest in Asia where power firms are already primed to boost output. That suggests that overall U.S. LNG export volumes should remain fairly robust for the near term at least, regardless of where the buyers reside. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab.
Metro
an hour ago
- Metro
Thousands attend candle-lit vigil for Austrian school shooting victims in Graz
To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Austrians held a candlelight vigil to mourn the country's deadliest mass shooting, which left eleven people dead. The country is reeling after yesterday, a former student of Borg Dreirschutzengasse Secondary School in Graz opened fire as students were taking exams. Eleven people have died so far from the shooting, with seven females and three males confirmed among the dead – the shooter killed himself in the bathroom. Yesterday evening, residents of Austria's second-largest city gathered in sombre silence to reflect. Thousands cried, prayed and stood watch over dozens of lit candles in the main town square. Attendee Felix Platzer told Reuters: 'When you hear about it, you have so much sympathy for the people, maybe you could have known someone. 'This is an example of solidarity, and you grieve together. Together it is easier to cope.' In a press conference after the shooting, Austrian Chancellor Christian Stocker said the country would enter three days of mourning, with the flag flown at half mast. 'That such a safe space was hit by such a violent act leaves us speechless,' he said. ''Today is about empathy. It's about cohesion, that we are there together for each other in a difficult hour.' Mario Kunasek, governor of Styria, said: 'Styria is mourning today, the green heart is crying. This is an unimaginable tragedy that happened this morning. 'This is so unfathomable. The lives of so many have changed dramatically today.' The shooter has been named as a 21-year-old man from Graz. Initial investigations have found he owned the guns legally. The suspect has not yet been named. More Trending Investigators found a farewell letter at the home of the suspected gunman, Austrian newspaper Krone has reported. Police reportedly raided his property yesterday afternoon and found the note, the contents of which are unknown. The suspect was a former student at the school and didn't finish his education there. He killed himself after committing the mass shooting. Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: Three gunmen on the loose in Philadelphia after two shot dead in mass shooting MORE: At least 11 injured after gunman opens fire during boat party MORE: Eurovision winner JJ leads calls for Israel to be banned from song contest
