How is the South African rand performing?

The South African rand has steadied in early trading, trading below the R17.90 level as it continues to recover from Monday's sharp decline driven by tariff concerns.

How is the US dollar performing?

The US dollar is losing some of its "exceptionalism," allowing other currencies, including the rand, to regain lost ground against the greenback.

Home / Business and Economy / Rand Recovers from Tariff Turmoil as US Deadline Looms

Rand Recovers from Tariff Turmoil as US Deadline Looms

Q: What is the focus for South Africa regarding trade?

South Africa is focused on whether it can negotiate a better trade pact with the US, as it currently faces a 30% duty on exports, the highest rate among Sub-Saharan African countries.

6 Aug

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Summary

Rand trades below R17.90 as it rebounds from Monday's slump
Investors await US decision on trade pact and Fed appointments
Dollar losing its "exceptionalism" as other currencies gain ground

Rand Recovers from Tariff Turmoil as US Deadline Looms

As of August 6, 2025, the South African rand has shown signs of stabilizing after a turbulent start to the week. The currency traded at 17.88 against the US dollar, barely changed from the previous day's close, as it continues to recover from Monday's sharp decline driven by tariff concerns.

According to currency strategist Andre Cilliers of TreasuryONE, the rand is currently trading below the R17.90 level, indicating a gradual rebound from the tariff-induced selloff. Investors remain focused on whether South Africa can negotiate a better trade pact with the US, as it currently faces a 30% duty on exports, the highest rate among Sub-Saharan African countries.

Meanwhile, the US dollar has been losing some of its "exceptionalism," as described by research firm ETM Analytics. This has allowed other currencies, including the rand, to regain lost ground against the greenback. Investors are also awaiting President Trump's announcement of a short-term replacement for outgoing Federal Reserve Governor Adriana Kugler, as well as his pick for the next Fed chair.

Despite the ongoing uncertainty, the Johannesburg Stock Exchange's Top-40 index has managed to rise by 0.6% in early trading. South Africa's benchmark 2035 government bond, however, has seen its yield increase by 3 basis points to 9.705%.

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