Tariff turmoil erupts

ADVERSE: RAND LOSES 6% AGAINST US DOLLAR AMID MARKET CARNAGE

- Ina Opperman

The tariffs US President Donald Trump announced last Wednesday have led to a blood-bath on the markets.

Markets have performed far worse than in March 2020, when the Covid pandemic hit the world. The rand also lost almost 6% of its value against the dollar.

According to Reuters, the S&P 500 Index, that includes 500 leading companies in the US and covers about 80% of available market capitalisation, lost $5 trillion in market value last week.

On Friday night the rand closed at R19.10/$, 70 cents weaker than a week before when it stood at R18.39. On Monday afternoon the rand was trading at R19.40.

Prof Bonke Dumisa, an independent economic analyst, said this showed the intentional manipulation of the rand is getting worse, as four of the five market indicators opened relatively significantly negative yesterday.

"Those who are manipulating the value of the rand will milk it until there is nothing more to exploit.