By Africa.com | Created at 2024-11-06 19:21:57 | Updated at 2024-11-06 21:27:11
2 hours ago
The South African rand dropped sharply to R17.81 against the dollar on Wednesday, marking a 3% decline as Donald Trump’s upcoming return to the White House spurred global investor anxiety. The development, signaling increasing risk aversion, is impacting emerging markets, with heightened geopolitical uncertainty and anticipated US tariffs adding pressure. The yield on South Africa’s 10-year government bond also spiked by over 30 basis points to 9.66%, reflecting soured investor sentiment. A second Trump presidency could negatively impact South Africa’s economy, particularly if it jeopardizes the African Growth and Opportunity Act (AGOA), which supports 13,000 South African jobs. Additionally, Trump’s tariff strategies could broadly damage South African exports to the US and globally, due to potential ripple effects on international trade.
SOURCE: DAILY MAVERICKS
