
The South African rand slipped against a strengthening U.S. dollar on Tuesday after President Donald Trump unveiled a series of policy changes post-inauguration.
At 15:32 GMT, the rand was at 18.5325 to the U.S. dollar (ZAR=D3), marking a 0.1% decline from its previous close. The rand had appreciated by about 1% on Monday in anticipation of Trump’s swearing-in.
Meanwhile, the U.S. dollar (USD=) was up by approximately 0.2% against a basket of global currencies.
Adam Phillips, treasury specialist at Umkhulu Treasury, commented, “We’ll need to wait until Trump’s administration is fully in place before any significant decisions are made on tariffs.”
The rand, like other risk-sensitive currencies, is often influenced by global factors, including U.S. fiscal policy, alongside domestic conditions.
On the local front, South Africa’s mining output showed a 0.9% decline in November year-on-year, compared to a revised 1.1% increase in October, according to data released by Statistics South Africa.
Looking ahead, attention will shift to December’s inflation figures, with economists polled by Reuters predicting an annual rate of 3.2%.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI) closed about 0.2% higher, while South Africa’s benchmark 2030 government bond (ZAR2030=) strengthened, with its yield dropping 7.5 basis points to 9.095%.