Rand on backfoot amidst global market jitters ahead of Trump's tariff salvo

THE rand weakened slightly on Tuesday, trading at around R18.28 to the dollar, amid rising concerns and low-risk investors assessed economic data and awaited details on US President Donald Trump's expected tariffs. The currency's decline exacerbated by prolonged budget negotiations, with market jittery ahead of a critical parliamentary vote.

- 

Trump, dubbing Wednesday "Tariffication Day", has pledged reciprocal tariffs on all countries with taxation pointing to a potential 20% levy on most imports. While no final decision has been confirmed, the uncertainty has unsettled global markets, adding pressure to the rand, already strained by ongoing talks between South Africa's ruling ANC and the Democratic Alliance over the National Budget.

The rand briefly rallied earlier this week on hopes of a budget breakthrough, but Tuesday's slide reflected renewed caution. It opened the session at R18.28 to the dollar, R19.78 against the euro, and R23.64 to the pound, underscoring a volatile start to 2025.