JOHANNESBURG (Reuters) -The South African rand fell on Monday as the dollar gained on global markets, with analysts saying its decline was exacerbated by expectations for a local interest rate cut and jitters over looming tariffs on South African exports to the United States.
At 1430 GMT the rand traded at 17.8650 against the dollar, about 0.9% weaker than Friday’s closing level.
The dollar was up 0.7% against a basket of global currencies.
Economists polled by Reuters expect the South African Reserve Bank to announce another 25 basis point reduction in its repo rate on Thursday, reducing South Africa’s relative interest rate return compared to less risky markets.
Four days before U.S. President Donald Trump’s 30% tariffs on South African goods take effect on Friday, Pretoria is yet to agree a trade deal with Washington, with its agriculture and automotive sectors bracing for potential job losses.
Domestic data releases this week include June money supply and private sector credit extension on Tuesday, June budget figures on Wednesday, and June producer inflation and trade numbers on Thursday.
The Johannesburg Stock Exchange’s Top-40 index was last down 0.3%.
The benchmark 2035 government bond was stronger, as the yield fell 4 basis points to 9.81%.
(Reporting by Sfundo Parakozov and Alexander Winning. Editing by Mark Potter)
