South Africa’s rand remained stable early Tuesday as concerns over U.S. tariff policies under President Donald Trump, uncertainty surrounding fiscal measures, and geopolitical tensions weighed on U.S. markets.
As of 06:49 GMT, the rand traded at 18.3750 per dollar, showing little movement. Meanwhile, the dollar weakened against a basket of global currencies.
“Tariff threats and the risk of counter-tariffs, uncertainty over fiscal policy given the mass retrenchments, and the U.S.’ stance in the geopolitical arena… appear to be weighing on U.S. markets,” said ETM Analytics in a research note.
“Without any market-moving data to trade on, these international developments will guide much of the domestic market’s direction.”
South Africa’s composite leading business cycle indicator (ZALEAD=ECI) declined by 1.8% month-on-month in December, according to data released by the central bank on Tuesday.
Investors focused on the domestic market are now awaiting key economic data, including January’s consumer inflation figures (ZACPIY=ECI) set for release on Wednesday, and producer inflation data (ZAPPIY=ECI) scheduled for Thursday. These reports will provide insights into the health of Africa’s most industrialized economy.
