Rand Hits 18-month Low

At 12.25pm, the rand traded at R19.31/US, down 1 from Fridays close, after earlier touching its weakest since October 2023.

Trump showed no sign of backing away from his tariff plans on Sunday, and investors worldwide poured into safe-haven currencies like the yen and Swiss franc on Monday. An emerging market stock index was heading for its biggest one-day selloff since the 2008 global financial crisis.

Local politics also weighed on the risk-sensitive rand, which lost more than 3 against the dollar last week.

The two biggest parties in South Africas government have clashed over the national budget, and investors are worried the pro-business Democratic Alliance could quit or be forced out of the coalition with the ANC.

Any removal of the DA from the coalition would have a significantly negative effect on South Africas outlook. It is the partnership between the ANC and DA that created a sense of stability and progress, said Casey Sprake, economist at Anchor Capital.