Rand faces onslaught over Trump hikes, GNU row

The rand was in free fall due to disagreements in the government of national unity (GNU) and fears that it will collapse, while the US' import tariffs were simply making matters worse for the local currency.

- Ina Opperman

The rand closed at R19.74/dollar on Tuesday night, but on Wednesday even surpassed that to trade at R19.83/dollar. The last time the rand was in this much trouble was in May 2023, when it traded at R19.77/dollar.

Last Friday, the rand breached the psychological barrier of R19/dollar, trading at R19.01, down from R18.30 on 31 March. On Wednesday night, the rand reached an all-time high of R19.93/dollar, but strengthened slightly and it is currently trading at R19.47/dollar after US President Donald Trump postponed his tariffs by 90 days.

The local currency already traded above R25/pound on Tuesday and even reached R25.47 at one stage on Wednesday, before strengthening slightly to R25.22 on Wednesday night.

Citadel chief economist Maarten Ackerman said the rand's fall is due to the global risk triggered by Trump' tariffs as well as domestic issues around the gridlock on the budget and the future of the GNU.