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At 15:45 GMT, the rand was trading at 13.9500 dollars per US dollar, 0.25% lower than its New York closing rate of 13.9150.
Image: provided.
JOHANNESBURG – The rand has weakened on Tuesday, giving up prior gains to risk aversion related to trade tensions between China and the United States, which has reintroduced itself into the currency markets .
Inventories fell in line with world markets as hopes of a truce in the US-China trade war dwindled.
At 15:45 GMT, the rand was trading at 13.9500 dollars per US dollar, 0.25% lower than its New York closing rate of 13.9150.
The currency hit an intra-day record of 13.7900 before falling back as offshore trade volumes rallied and led to a bullish dollar wave.
Bonds also weakened, as the benchmark paper yield in 2026 increased by 3 basis points to 8.99%.
US President Donald Trump announced on Monday that he intends to continue his efforts to increase tariffs on Chinese imports by $ 200 billion, from 10% to 25% currently, which would cause fluctuations in foreign exchange demand. more risky.
"There seems to be a back and forth with the news about trade tensions. Markets do not like uncertainty and this has caused volatility, "said Ryan Woods, trader at Independent Securities.
On the local level, business confidence has collapsed for the third consecutive quarter, effectively eliminating some of the ongoing rally hikes in anticipation of product numbers. gross domestic expected at the beginning of next week.
As for equities, the All Share index fell 0.65% to 51,354 points, while the index of 40 blue-chip companies sold 0.70% to 45,225 points.
The South African chemical and fertilizer manufacturer, Omnia Holdings, rose 5.38 percent to 89.50 rand, after announcing the removal of 125 jobs and cutting costs.
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