South African Rand Gains 0.4% as U.S. Tariff Threat Drops to 12.5%
Updated
Updated ยท Reuters ยท Jun 4
South African Rand Gains 0.4% as U.S. Tariff Threat Drops to 12.5%
3 articles ยท Updated ยท Reuters ยท Jun 4
Summary
The rand strengthened to 16.28 per dollar by 1506 GMT, up about 0.4%, after South Africa's trade ministry said the country remained compliant with forced-labor obligations despite Washington's proposed tariffs.
The U.S. proposal would impose a 12.5% tariff on South African imports, which ETM Analytics said was still negative but a clear improvement from the earlier 30% "Liberation Day" threat.
That tariff plan stems from a Section 301 unfair-trade investigation as the Trump administration tries to rebuild emergency tariffs the Supreme Court struck down in February.
Broader market conditions also helped the currency: the dollar was flat and oil fell about 3% on hopes a ceasefire between Israel and Lebanon could ease regional tensions and reopen the Strait of Hormuz.
South African assets were mixed, with the Top-40 index down 0.6% and the 2035 government bond yield up 8 basis points to 8.565%.