South Africa's rand recovers slightly as Trump's tariff hurts dollar

02 Mar, 2018

At 0640 GMT the rand was 0.27 percent weaker at 11.8800 per dollar, a touch better than Thursday's slide to a 2-week worst of 11.9450 triggered by bets the US Federal Reserve could raise interest rates at least four times in 2018.

Trump's tariff plan sparked fears of an imminent trade war and worries about its potentially negative impact on the world's largest economy, dragging the dollar back from six-week highs.

With no data releases locally and mid-tier data releases offshore, traders are set to eye the 11.90 technical resistance level as an indicator of momentum.

Stocks were set to open softer with the benchmark Top-40 futures index down 0.5 percent.

Bonds were also softer, with the yield on the benchmark paper due in 2026 up half a basis point to 8.14 percent.

 

Copyright Reuters, 2018

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