Battered rand succumbs to trade tension and slips back through the R15/$ level

The rand was under pressure on Monday morning, weakening through the symbolic R15/$ level again, as global trade tension resurfaced.

The slide in the local currency is likely to put pressure on the Reserve Bank’s monetary policy committee, which is scheduled to decide on interest rates on Thursday.

A weaker currency increases the cost of imported products, including vehicle fuel, which in turn raises the prices consumers pay for goods.

Stats SA will on Wednesday release the latest figures on inflation, which is expected to have accelerated at an annual rate of 5.2% in August, from 5.1% in July.

The fresh slide in the rand came amid speculation that US President Donald Trump is poised to impose another round of tariffs on Chinese goods, upping the ante in the trade dispute between the world’s two largest economies.

The US president is reportedly ready to slap $200bn worth of Chinese goods, in a move that is expected to trigger retaliation from China.