JOHANNESBURG (Reuters) -South Africa’s rand gained on Friday after a turbulent week, as investor focus shifted towards U.S. President-elect Donald Trump’s inauguration on Monday.
At 1524 GMT, the rand traded at 18.71 against the U.S. dollar, about 0.6% stronger than its previous close.
Data out of the U.S. this week showed a sturdy labour market and sticky inflation, and uncertainty over the potential impact of Trump’s tariffs and tax plans has led the U.S. Federal Reserve to project two interest rate cuts this year.
However, Fed Governor Christopher Waller said on Thursday three or four rate cuts are still possible if economic data weakens further.
“Looking ahead, investors should closely monitor January 20, 2025, when President-elect Donald J. Trump is set to begin his second term,” said Matthew Liversage, trading services dealing specialist at IG.
“Volatility is expected in the coming week as investors adjust their positions ahead of the market close or hold cash in anticipation of developments early next week.”
On the stock market, South Africa’s blue-chip Top-40 index closed about 1.3% up.
Its benchmark 2030 government bond was little changed, with the yield at 9.21%.
(Reporting by Sfundo Parakozov and Tannur Anders;Editing by Bhargav Acharya and Mark Potter and Ros Russell)
