South African Rand Company, the market is waiting for clarity about local tariffs and politics

South African Rand strengthened on Thursday, when the market was waiting for clarity about US tariffs and local investors looking for news about the future of the coalition government due to the remaining budget disputes.

In 1355 GMT, Rand was traded at 18.775 against the US dollar, around 0.3% stronger than the previous closure.

US President Donald Trump met with Japanese officials on Wednesday, in one of the first rounds of face -to -face talks because of its sweeping tariffs combining the global market and triggered fears of recession.

The market also processed comments by Federal Reserve Chair Jerome Powell, who warned the risk of slowing down growth and price increases due to tariffs.

Like other risk sensitive currencies, Rand takes direction from global driving such as US economic policies in addition to domestic factors.

Local investors continue to track developments around the budget disputes between the two largest parties in the coalition government, the African National Congress (ANC) and the Democratic Alliance (DA), with an increase in tax added on May 1.

Da Pro-business gave a vote against the budget fiscal framework in parliament and challenged the increase in VAT planned in court.

“The development of domestic politics (South Africa) does not occur separately. Conversely, if left unresolved, they can add to the uncertain international environment,” Etm Analytics said in research records.

In the stock market, Top-40 (.Jtopi), the index changes slightly.

South African benchmark 2030 government bonds are stronger, with the result of 2 basis points to 9.16%.
Source: Reuters (reporting by Tannur Anders and Bhargav Acharya; Editing by Jamie Freed and Helen Popper)