JOHANNESBURG (Reuters) -South Africa’s rand was little changed on Tuesday as markets processed U.S. tariffs imposed on Canada, China and Mexico.
At 1500 GMT, the rand traded at 18.59 against the U.S. dollar, near its previous close of 18.5875.
The dollar fell to a three-month low on Tuesday on concerns about slowing growth and the possibility tariffs imposed by U.S. President Donald Trump could be inflationary. It last traded about 0.3% weaker against a basket of currencies.
Trump’s 25% tariffs on imports from Canada and Mexico took effect on Tuesday and duties on Chinese goods doubled to 20%, adding to trade tensions with the three leading U.S. trading partners.
Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S. policies in addition to local factors.
South Africa’s economy returned to modest growth in the fourth quarter of last year, helped by a recovery in agricultural output after the sector triggered a contraction in the previous quarter, data from Statistics South Africa showed on Tuesday.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed down about 1%.
South Africa’s benchmark 2030 government bond was stronger, with the yield down 6 basis points to 9.035%.
(Reporting by Sfundo Parakozov and Tannur Anders; Editing by Andrew Heavens and Barbara Lewis)
