Economy

Rand stages cautious recovery, tariff, coalition worries linger

Date: Apr 11, 2025

The Rand gained in early tradethis Friday, making a cautious recovery after this week's global tariff turmoil.

However, but worries lingered over United States President Donald Trump's next trade move and over whether South Africa's (SA) coalition government might split.

The Rand traded at 19.3675 ($1.00) against the Dollar , roughly 0.5% stronger than Thursday's closing level.

It fell steeply on Monday and Tuesday and hit a record low against the dollar on Wednesday, before staging a sharp relief rally after Trump announced a 90-day pause in higher tariff rates on dozens of trading partners including SA.

Analysts said the rand would continue to move on global developments in Trump's tariff war, as well as local headlines on the future of the market-friendly coalition government.

The two biggest parties in the coalition, the African National Congress (ANC) and the pro-business Democratic Alliance (DA), clashed over the budget last week, with the DA voting against it in parliament and challenging it in court.The ANC and DA are due to meet on Saturday to discuss the budget impasse.

The benchmark 2030 government bond was marginally weaker in early deals, as the yield rose one basis point to 9.25%.

--Reuters--

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