Rand weaker on Trump's BRICS tariff threat
The rand weakened on Monday as markets digested renewed geopolitical risk sparked by US President Donald Trump's latest move to target BRICS-aligned countries with additional tariffs.
Trump extended the deadline for new trade tariffs to August 1 and warned that nations aligning with BRICS or adopting anti-American policies would face an extra 10% duty. The fresh threat unsettled emerging markets and hit sentiment across global trading floors.
'Global markets opened the week on edge as President Trump reignited trade tensions ahead of the July 9 tariff deadline,' said Bianca Botes, director at Citadel Global. 'While only Britain, China, and Vietnam have struck deals, a dozen nations are expected to receive tariff letters starting today.'
Currency strategist at TreasuryONE, Andre Cilliers, said the announcement put pressure on risk-sensitive currencies. 'BRICS currencies, along with EM markets, have come under pressure this morning with the rand weakening.'
By mid-morning, the local unit had slipped to R17.71 to the dollar, from R17.50 last week Thursday.
South Africa's political alignment is also in the spotlight. 'South Africa-US relations remained strained with the introduction of the US-South Africa Bilateral Relations Review Act in Congress,' Cilliers noted. The legislation is set to examine South Africa's foreign relations, particularly with China and Russia, as well as alleged human rights violations, he said.
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Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Trump showed visuals of the firebrand chanting 'shot the boer' - as he sought to substantiate false claims that there was a 'white genocide' in South Africa during President Cyril Ramaphosa's visit to the Oval Office in May. 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4 hours ago
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