The South African rand appreciated on Wednesday, while the dollar was shaken by the uncertainty of the markets around American customs duties and local investors awaited news on the future of the coalition government.
At 07 h 57 GMT, the Rand was traded at 18,9425 against the US dollar, about 0.4 % more than in its previous fence.
The dollar was exchanged for the last time about 0.7 % lower compared to a basket of currencies.
The customs duties imposed by US President Donald Trump exacerbated tensions between the United States and China, the main trading partner in South Africa, which has fueled uncertainty and the greenback in recent weeks.
“There have been few changes on the customs duties front overnight, but the trade war between the United States and China continues to intensify,” said Andre Cilliers, strategist in currency at Treasuryone.
-Investors focused on the domestic market will follow the confidence index for South African companies for March at 9:30 am GMT and retail sales for the month of February at 11:00 GMT, in addition to developments on the country’s budget.
The two largest parties in the Government of National Unity (GNU) in South Africa disagree on the proposal to increase the value added on May 1.
“The short -term resumption of ZAR has greatly materialized, but it could extend to any positive new on the part of the GNU concerning a budget that most parties can support,” said ETM Analytics in a research note.
On the Johannesburg Stock Exchange, the 40 star values index changed little during the first transactions.
The South African state loan of reference to 2030 has increased slightly, the yield having dropped from 1 base point to 9.21 %. (Report by Tannur Anders; edition by Sharon Singleton)
