Rand dips below R19/$ as markets rebound on easing political tensions

Fears of a potential collapse of the Government of National Unity appear to abate

- SIPHELELE DLUDLA

THE South African rand kicked off the week with notable momentum, rebounding and strengthening below the critical R19-mark against the US dollar on Monday.

The enthusiastic market response came as fears of a potential collapse of the Government of National Unity (GNU) appeared to abate, notably complemented by a temporary suspension of US tariffs that has given the currency a much-needed boost.

US President Donald Trump last week authorised a 90-day pause on steep Liberation Day import tariffs for about 75 countries that trade with the US, but raised them to 145% for China.

Gold also eased 0.8% fell to around $3 200 per ounce on Monday, retreating from an all-time-high as trade tensions after an intense wave of safe-haven buying amid a deepening trade war between the US and China drove the bullion to a record $3 245 per ounce.

On Monday, the rand strengthened by more than 1.4% to R18.86 against the US dollar, marking a significant shift from alarming near historic lows of R19.82/$1 recorded just a week prior.