The Rand Is Getting Absolutely Pummelled

At 10.11am, the rand traded at R18.90/US, not far from its previous close. It hit R19.01/ earlier in the day, its weakest since mid-January.

On Wednesday, Trump announced a 10 baseline tariff on all imports to the US, and higher duties on dozens of countries, including South Africa, which was hit with a 30 rate.

Trump said the tariffs were a response to duties and other non-tariff barriers put on US goods.

South Africas parliament had earlier passed the budgets fiscal framework on Wednesday after weeks of political wrangling, but the second biggest party in the coalition, the business-friendly Democratic Alliance, voted against the measure and said it would challenge the outcome in court.

The rand gradually weakened over the course of the day on Wednesday as markets fears grew that the DA may potentially exit the coalition, and went into freefall after the tariff announcement. It slipped as much as 2.6 against the dollar.