The rand firmed more than 1% on Monday, while the JSE was little changed as the first full trading week of the new year got under way.
The dollar took a hit after a Washington Post report revealed that president-elect Donald Trump’s tariff plan would be narrower in scope than initially anticipated.
According to the report, the tariffs would primarily target critical imports, as reported by Bloomberg. This revised approach is expected to have a lesser impact than Trump’s initial proposals, yet still promises to significantly alter global commerce dynamics.
The report led to a decline in the dollar, while European stocks and currencies, including emerging currencies, experienced a surge, as reported by Bloomberg.
At 5.32pm, the rand had firmed 1.14% to R18.55/$, 0.44% to R19.26/€ and 0.59% to R23.20/£. The euro was 0.71% firmer at $1.04.
Meanwhile, this week’s key economic releases will provide investors with crucial insights into the US labour market.
The highly anticipated US December nonfarm payrolls report is scheduled for release on Friday, marking one of the first significant data points of the year.
The report’s timing is particularly relevant as it will precede the Federal Reserve’s meeting later this month, influencing interest rate decisions.
Investors will closely watch the job openings and labour turnover survey (Jolts) on Tuesday and the December ADP employment survey on Wednesday, providing further guidance on the trajectory of US interest rates.
“The first full trading week of the year is packed with key data releases, including the FOMC [federal open market committee] minutes on Wednesday,” said TreasuryOne currency strategist Andre Cilliers.
“Notable releases include tomorrow’s US Jolts report, Thursday’s US jobless claims data and Friday’s highly anticipated US payrolls and unemployment numbers,” he said.
The JSE all share and the top 40 were little changed, with the former at 84,745 points.
At 5.40pm, the Dow Jones industrial average was 0.59% firmer at 42,998 points, while markets were mixed in Europe.
Shares in ArcelorMittal SA fell as much as 27% on the day after the company said it would proceed with the wind-down of its long steel business, warning that the move will have a big effect on local economies.
Amsa estimates that about 3,500 direct and indirect jobs may be affected by the decision.
The company share price plunged 27.33% to R1.09.
Gold lost 0.44% to $2,633.38/oz, while platinum gained 0.86% to $923.5. Brent crude was 1.05% firmer at $77.31 a barrel.
With Jacob Webster
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