CAPE TOWN: South Africa’s rand firmed against a globally weaker dollar early on Monday after U.S. President Donald Trump struck a protectionist tone in his inauguration speech, offsetting optimism that he will follow through on promises of tax cuts and other stimulus.
At 0645 GMT, the rand <ZAR=D3> traded at 13.5000 per dollar, 0.74 percent firmer from its New York close on Friday. Trump’s first address as president on Friday highlighted his “America first” policies that were short on specific proposals, and disappointed investors hoping for details on his plans to stoke growth, spend on infrastructure and reduce taxes.
Locally, investors await the South African Reserve Bank’s decision on interest rates on Tuesday. * Stocks were set to open lower at 0700 GMT, with the JSE securities exchange’s Top-40 futures index <ALSIc1> down 0.35 percent. In fixed income, the yield for the benchmark government bond due in 2026 <ZAR186=> dipped 4 basis points to 8.68 percent.
