Rand's rollercoaster ride, Trump tariffs, GNU fuel currency turmoil

AFTER the rand hit a record high on Wednesday night, flirting with R20 to the greenback and surpassing levels last seen in June 2023, it retreated somewhat on Thursday, trading at around R19.44 around lunch time.

- NICOLA MAWSON

This settling came even as systematic issues such as worries over the ongoing stability of the new administration continues to unnerve markets and US President Donald Trump's 30% tariffs on South Africa came into effect.

Nolan Wapenaar, co-chief investment officer at Anchor Capital, said that market prices, global factors and what is impacting the market is changing by the hour. “It has been a busy and volatile week. At the moment everyone is digesting the latest set of tweets from Trump.”

What matters, Wapenaar noted, is fundamental that tariffs are higher than previously; tariffs are paused not gone and that Trade negotiations will be difficult.

On Wednesday, Trump paused some of his heavier tariffs following massive hits to global markets following his shock “Liberation Day” statement on Tuesday that saw higher duties than previously expected being announced.

The US President declared a 90-day trade cease-fire for most countries, taking the bulk of US import countries down to 10% again - although China's import duties increased to 125% after it retaliated with tariffs of its own.