Rand On Front Foot Following Bloodbath Week, But Global Stocks Sag As Trade War Hangover Persists

The South African rand held steady on Friday as global markets continued on a downward trajectory after a brief rally on Wednesday.

The local currency was trading at R19.28 by mid-morning, holding steady on the gains it has seen in the past two days, after US President Donald Trump announced a pause on most of the Liberation Day tariffs that have sparked a fierce trade war.

The rand briefly breached the R19.90 mark early on Wednesday, surpassing the all-time low seen in June 2023, but by Friday it had bounced back by almost three percent.

However, even after Fridays gains, the rand was still 5.3 weaker than it was at the beginning of April, when it traded at R18.36 against the greenback.

According to Annabel Bishop, economist at Investec, the risks have not been eliminated, however the negative sentiment has halted the downward spiral for the local currency seen earlier this week.