Rand Edges Up Amid Market Turmoil Over Trade Tensions
The South African rand regained some ground on Tuesday morning after plunging to a two-year low the previous day, amid growing fears of a global recession triggered by intensifying trade tensions between the United States and China.
Following Monday’s close at R19.57 to the US dollar (April 7), the rand strengthened to R19.39 in early Tuesday trade, buoyed by a modest recovery in Asian markets. Despite this uptick, market sentiment remains fragile as investors await clarity on possible retaliatory measures from US President Donald Trump in response to China’s latest round of tariffs announced on Friday.
Since Trump’s “Liberation Day” declaration on April 2, the rand has depreciated by approximately 4.6%.
The Johannesburg Stock Exchange (JSE) opened sharply lower on Monday, falling around 5% and dropping below the 80,000-point threshold for the first time in 2025. However, the market recovered slightly by the end of the session, closing 0.75% higher at 82,162. Despite the bounce-back, the JSE has shed nearly 8.7% of its value since the volatility sparked by Trump’s announcement.
Global stock markets have also been under pressure since Trump imposed sweeping tariffs on several countries last Wednesday, igniting fears of a worldwide economic slowdown. Tensions between Washington and Beijing have intensified, with Trump threatening to counter China’s 34% retaliatory tariff with an additional 50% levy.
In response, a Chinese government spokesperson rejected the threat, calling the move “a mistake on top of a mistake,” according to AFP. “If the US insists on going its own way, China will fight to the end,” the spokesperson from Beijing’s commerce ministry stated on Tuesday.
Amid the turmoil, Trump urged Americans to “be strong, courageous and patient,” and reaffirmed on Monday that he had no intention of pausing the implementation of the tariffs.
Meanwhile, European markets showed signs of recovery on Tuesday morning, mirroring gains seen in Asia. London’s FTSE 100 rose by 1.3%, Paris’ CAC 40 climbed 1.4%, and Germany’s DAX advanced by 0.9%, AFP reported.