Rand recovers from tariff driven sell-off

The rand was firmer on Friday, after a bout of aggressive selling in the previous session triggered by Washington’s decision to impose trade tariffs on metal imports.

At 0700 GMT the rand was 0.41% firmer at 12.64 per dollar from an overnight low of 12.73.

Washington’s decision to impose trade tariffs on metal imports from key allies provoked a swift response, with Canada, Mexico and the EU imposing retaliatory tariffs.

The rand was on the front foot in early trade as investors took profits on the dollar following a short squeeze on emerging markets.

With US employment data due trading is expected to be subdued, with the rand seen in a range between 12.40 and 12.75.

Stocks opened firmer, with the Johannesburg Top 40 Index up 1% to 50 283 points.

Bonds were weaker, with the yield on the benchmark 2026 paper up 3.5 basis points to 8.59%.