JOHANNESBURG (Reuters) – South Africa’s rand strengthened against a weaker dollar on Thursday, as investors digested U.S. data and President Donald Trump’s tariff plans.
At 1509 GMT, the rand traded at 18.3975 against the dollar, about 0.7% firmer than its previous close.
The dollar index was last trading down about 0.4% against a basket of currencies after data showed U.S. weekly jobless claims rose slightly.
Trump said on Wednesday that he would announce fresh tariffs over the next month or sooner, adding lumber and forest products to previously announced plans.
The local currency slipped on Wednesday after a last-minute postponement of the national budget due to disagreements within the country’s coalition government over a proposal to hike value-added tax (VAT).
President Cyril Ramaphosa said the cabinet would work together to deliver a new budget, which is now scheduled for March 12.
Foreign ministers from the G20 top economies met in South Africa on Thursday, amid tensions between members over the Ukraine war, trade disputes and with the top U.S. diplomat staying away owing to a feud with the hosts.
G20 finance ministers and central bank governors are due to meet next week in Cape Town.
On the stock market, the Top-40 index closed about 0.7% higher.
South Africa’s benchmark 2030 government bond was slightly weaker, with the yield up 1.5 basis points to 9.195%.
(Reporting by Sfundo Parakozov and Bhargav Acharya; Editing by Helen Popper and Sharon Singleton)
