South African Rand Hits Multi-Month Lows Amid US Tariff Imposition

The South African rand has depreciated to its lowest level since May amid the imposition of a 30% U.S. tariff on South African exports, following the country's failure to meet a trade deal deadline with the United States. President Donald Trump confirmed the tariff would take effect in August, despite ongoing negotiations and a narrow window for South Africa to resolve the dispute. The stronger U.S. dollar, boosted by Trump's tariff measures on multiple countries and a cautious Federal Reserve stance, has further pressured the rand and other currencies globally. South Africa's Reserve Bank has cut interest rates recently, which, combined with the tariff concerns, has made rand assets less attractive to investors. While South Africa hopes to strike a last-minute trade deal offering concessions such as U.S. LNG purchases and investments, uncertainty continues to weigh on the currency and economic outlook. Investor focus also remains on domestic economic indicators like manufacturing PMI and vehicle sales as well as government bond yields, which have seen some easing despite the tariffs.