Latest news with #rand
News24
16 hours ago
- Business
- News24
Rand crashes through R18/$ amid tariff turmoil, US rate outlook
• For more financial news, go to the News24 Business front page. Markets mostly fell on Thursday while the dollar held most of its gains as traders weighed a cautious Federal Reserve with strong tech earnings and Donald Trump's tariffs on key economies South Korea and India. The rand breached R18/$ for the first time in more than a month, and was trading at R18.07 by late morning. The local currency has lost almost 3% of its value over the past week. The US central bank held interest rates steady and refrained from suggesting it would cut any time soon despite. While two members of the policyboard took the rare move of dissenting and voting to cut, investors pared their bets on a reduction in September sending the dollar rallying against its peers. 'For South Africa, hopes are high for another interest rate cut on Thursday, which would see a rapid interest rate cut cycle since September last year in contrast to the Fed, with the SARB then only missing one meeting in March to deliver a -25bp cut so far,' said Investec chief economist Annabel Bishop. Bishop said tariff concerns were also weighing on the rand. Earlier on Thursday, Minister of Trade, Industry and Competition Parks Tau confirmed that a deal has not been reached with the US, and added that SA may submit a new last-minute offer before the deadline of August 1. The latest developments on the trade front saw Trump announce a deal that sees 15 percent tariffs on South Korean goods and a commitment from Seoul to invest $350 billion in the United States. He also said India would face 25 percent tolls, coupled with an unspecified penalty over New Delhi's purchases of Russian weapons and energy. And he signed an executive order implementing an additional tax on Brazilian products, as he lambasts what he calls Brazil's "witch hunt" against his far-right ally, former president Jair Bolsonaro on coup charges. Traders are keeping tabs on talks with other countries that are yet to sign deals with Washington ahead of Trump's self-imposed Friday deadline. After a broadly negative day on Wall Street, Asian markets struggled. Hong Kong, Shanghai, Sydney, Singapore, Seoul, Manila, Wellington and Jakarta all fell, though Tokyo, Taipei, Mumbai and Bangkok edged up. London, Paris and Frankfurt rose in the morning. The JSE's All Share index was flat. MTN surged 6% after its Nigerian business reported strong half-year results. But Anheuser-Busch slumped almost 9% after its results disappointed. Inflation risk The Fed cited a moderation in economic activity in the first half and 'solid' labour market conditions but warned 'uncertainty about the economic outlook remains elevated', while inflation too is somewhat heightened. Asked about Trump's tariff deals and whether they brought more certainty, Fed boss Jerome Powell told reporters: 'It's been a very dynamic time for these trade negotiations.' He added that 'we're still a ways away from seeing where things settle down'. Kerry Craig of JP Morgan Asset Management said: 'With some details on baseline tariffs only just becoming clear, and many of the details of the recently agreed 'deals' still to be ironed out, the risk is that inflation rates will continue to rise in the coming months.' US jobs data due Friday will be closely watched for a fresh look at the state of the world's top economy, with a weak reading likely to put pressure on the Fed to cut. The yen retreated against the dollar after the Bank of Japan decided against hiking interest rates, while lifting economic growth and inflation costs. It also cautiously welcomed the country's trade deal with the United States. While the rising inflation outlook opened the door to a potential rate hike later in the year, Yuxuan Tang at JP Morgan Private Bank said such a move was "still highly uncertain". "BoJ policymakers face a delicate balancing act between competing policy dilemmas, including sticky inflation, lukewarm consumer demand, fiscal pressures, and tariff impacts," he wrote in a commentary. Traders had been given a healthy lead from the tech sector after titans Microsoft and Meta posted better-than-expected earnings, sending their stocks soaring in after-market trade. Amazon and Apple are due to release later Thursday.
Reuters
4 days ago
- Business
- Reuters
South African rand starts data-filled week softer, eyes on tariff deadline
JOHANNESBURG, July 28 (Reuters) - The South African rand was weaker in early trade on Monday, with investor attention pinned on key economic data expected during the week while investors also eyed an uncomfortably close August 1 deadline for U.S. President Donald Trump's country-specific tariffs. At 0524 GMT the rand traded at 17.7475 against the dollar , 0.2% weaker than Friday's close. The risk-sensitive currency lost a bit of ground last week and remains on the back foot as cautious traders await tariff updates with the country facing a 30% duty on its exports to the U.S. and an interest rate decision by the South African Reserve Bank on Thursday. Many traders and analysts expect another rate cut (ZAREPO=ECI), opens new tab after inflation (ZACPIY=ECI), opens new tab rose modestly in June, moving just inside the central bank's target range. For further clues on the shape of Africa's most industrialised economy, investors will look to money supply (ZAM3=ECI), opens new tab and private sector credit (ZACRED=ECI), opens new tab data on Tuesday, budget balance (ZABUD=ECI), opens new tab figures on Wednesday, producer inflation (ZAPPI=ECI), opens new tab and trade balance (ZATBAL=ECI), opens new tab data on Thursday. South Africa's benchmark 2035 government bond was marginally stronger in early deals, as the yield fell 1.5 basis points to 9.835%.
Reuters
22-07-2025
- Business
- Reuters
South African rand edges up after coalition partner backs budget bill
JOHANNESBURG, July 22 (Reuters) - The South African rand was slightly stronger on Tuesday after the second-biggest party in the coalition government said it would vote in support of the last major piece of budget legislation. The Democratic Alliance (DA) said it would back the Appropriation Bill in parliament on Wednesday after President Cyril Ramaphosa acceded to one of its demands by firing a minister it had accused of misconduct. The budget has been held up for months by wrangling between the DA and Ramaphosa's African National Congress party. At 1515 GMT the rand traded at 17.6050 against the dollar , up 0.1% on Monday's closing level. Morgan Stanley said it had turned more bullish on South African government debt in the wake of the minister's removal, which it said had opened the door for political tensions to ease. South Africa's benchmark 2035 government bond gained on Tuesday, as the yield fell 14 basis points to 9.845%. Markets reacted little to a decline in a central bank business cycle indicator that gauges the local economic outlook. The leading indicator (ZALEAD=ECI), opens new tab fell 1.3% month-on-month in May, following a 0.6% decrease in April. The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab closed down 0.4%.
Reuters
21-07-2025
- Business
- Reuters
South African rand flat with inflation the week's main focus
JOHANNESBURG, July 21 (Reuters) - The South African rand held steady in early trade on Monday, with the main focus this week on inflation data that will influence the central bank's thinking on interest rates. At 0740 GMT the rand traded at 17.7075 against the dollar , unchanged from Friday's close. Statistics South Africa will release June inflation data on Wednesday, with analysts polled by Reuters expecting a modest rise to 3% year on year from 2.8% in May (ZACPIY=ECI), opens new tab. "A softer print could open the door for one last rate cut this year, while a firmer number would push that possibility further out," said Andre Cilliers, currency strategist at TreasuryONE. The South African Reserve Bank's next interest rate announcement is on July 31. The bank cut its repo rate by 25 basis points at its last meeting in May (ZAREPO=ECI), opens new tab, with inflation below its 3%-6% target range. The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab was up about 0.4% in early trade. The benchmark 2035 government bond was little changed in early deals, with the yield at 9.935%.
Reuters
15-07-2025
- Business
- Reuters
South African rand inches up before local mining data, US inflation print
JOHANNESBURG, July 15 (Reuters) - The South African rand edged up in early trade on Tuesday before the release of local mining production figures and as investors awaited U.S. inflation data due later in the day that could give clues on the Federal Reserve's interest rate path. At 0702 GMT, the rand traded at 17.8125 against the dollar , 0.5% firmer than Monday's close. Statistics South Africa will publish May mining production numbers (ZAMNG=ECI), opens new tab, (ZAGLD=ECI), opens new tab at 0930 GMT. Production fell 7.7% year-on-year in April, but analysts polled by Reuters and Nedbank economists expect it to have fallen by a smaller margin of 5.4% and 2.1% respectively this time around. "Despite marginal improvements, logistics remain a significant hindrance to production, particularly in the current context of subdued commodity prices and soft demand," Nedbank economists said in a research note. The greenback last traded flat against a basket of currencies as investors awaited U.S. consumer price data for June due at 1230 GMT on Tuesday. South Africa's benchmark 2035 government bond was flat in early deals, with the yield at 9.885%.
