The South African rand weakened ahead of GDP figures release, trading at 18.64 per dollar. Investors are cautious of U.S. tariffs introduced by President Trump, with local GDP results expected to show a 0.9% expansion. Concerns about the national budget could impact the rand’s stability, with the Johannesburg Stock Exchange also facing minor declines.
On the morning of March 4, 2023, the South African rand experienced a decline against the U.S. dollar, trading at 18.64, a 0.3% decrease from the previous day. This move came as investors prepared for forthcoming U.S. tariffs announced by President Donald Trump, which will impact Canada and Mexico. The dollar, however, was slightly weaker against a broader range of currencies.
Investors are particularly focused on the South African gross domestic product (GDP) figures set to be released at 0930 GMT. The anticipated data will provide insight into the economic stability of South Africa, with economists predicting a growth rate of approximately 0.9%. According to Andre Cilliers, a currency strategist at TreasuryONE, “A stronger (GDP) print could support ZAR (the rand), but budget concerns remain a risk factor,” highlighting ongoing government budgetary uncertainties.
Additionally, the Johannesburg Stock Exchange’s Top-40 index saw a decline of about 0.7% during early trading. The South African benchmark 2030 government bond remained stable with a yield of 9.085%. Overall, the combination of international trade dynamics and local economic indicators will significantly influence the rand’s performance in the near future.
In summary, the South African rand’s depreciation reflects global trade uncertainties and local economic indicators. Investors are keenly awaiting the GDP data, which may either bolster or further challenge the rand in light of ongoing governmental budget issues. The overall economic landscape remains cautious as both local and international factors shape the market’s response.
Original Source: www.cnbcafrica.com
