Financial Trade Freedom - Investing and Stock News
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
No Result
View All Result
Financial Trade Freedom - Investing and Stock News
No Result
View All Result
Home Investing

USD/ZAR forecast: Here’s why the rand will rebound despite tariff threat

admin by admin
July 8, 2025
in Investing
0
USD/ZAR forecast: Here’s why the rand will rebound despite tariff threat
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

The USD/ZAR exchange rate rose to 17.86 on Tuesday as investors reacted to Donald Trump’s trade war with South Africa. It rose to a high of 17.86, up from the year-to-date low of 17.50.

US and China trade war and BRICS tariffs

The South African rand has come under pressure this week for two main reasons. First, Donald Trump threatened to impose a 10% tariff on all goods coming from BRICS countries, which he believes are anti-American. 

This includes countries like South Africa, Brazil, Russia, China, Iran, Ethiopia, Saudi Arabia, and the United Arab Emirates. Such a move would have an impact on the South African economy, which counts the US as the biggest buyer of its products. 

Second, South Africa is under pressure after Trump wrote a letter to Cyril Ramaphosa, pointing to an upcoming 30% “reciprocal” tariff on all goods from the country. As such, the US will allocate a 40% tariff on all South African goods if the two of them are implemented.

South Africa argues that the reciprocal tariff calculation was flawed as it charges no tax on most goods coming from the United States. Most analysts agree with South Africa’s view, arguing to the average South African tariff of US goods of between 4% and 6%.

Trump calculated South Africa’s reciprocal tariff by subtracting the US exports of $6.5 billion from imports of $11.7 billion. He then divided the $5.2 billion deficit fwith the total trade and multiplied by 100. To ensure “fairness” he divided the number by 2. Ramaphosa said:

“South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the US. “We welcome the commitment by the US government, that the 30% tariff is subject to modification after we negotiate with the US.”

The reality, however, the US could emerge as the key loser in this trade war since most of South Africa’s exports are precious metals like gold and platinum that the US does not have in abundance. South African can also find other buyers of these metals.

The USD/ZAR pair has also reacted to the recent political crises in the country. Ramaphosa recently solved a crisis that threatened his coalition with the Democratic Alliance.

After that, the president faced exclusive claims by a police commissioner who said that a cabinet secretary sabotaged probes into political assassinations. 

USD/ZAR technical analysis

USD/ZAR chart by TradingView

The daily chart shows that the USD/ZAR exchange rate bottomed at 17.50 this month and then rebounded after new tariff crisis. It remains below all moving averages, a sign that bears are in control for now. 

The pair has also dropped below the important resistance level at 18, the lowest swing on March 18 this year. 

Therefore, the most likely scenario is that the pair continues to fall, with the next key level to watch being 17.50, its lowest point this year. A drop below that level will point to more downside as the ongoing tariff fears ebb.

The post USD/ZAR forecast: Here’s why the rand will rebound despite tariff threat appeared first on Invezz


Previous Post

Lloyds share price ripe for a breakout ahead of July 24 earnings

Next Post

“Crypto Week” agenda revealed and top bills to watch

Next Post
“Crypto Week” agenda revealed and top bills to watch

“Crypto Week” agenda revealed and top bills to watch

  • Trending
  • Comments
  • Latest
U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

February 19, 2025
How Companies Use Derivatives To Hedge Risk

How Companies Use Derivatives To Hedge Risk

February 19, 2025
KFC moves U.S. headquarters from Kentucky to Texas

KFC moves U.S. headquarters from Kentucky to Texas

February 19, 2025
Nvidia shares continue golden run, hit fresh highs: analysts remain firmly bullish

Nvidia shares continue golden run, hit fresh highs: analysts remain firmly bullish

June 27, 2025
Lucid stock price forms descending triangle ahead of earnings

Lucid stock price forms descending triangle ahead of earnings

0
From tariffs to DOGE, what companies are saying about the impact of MAGA policies

From tariffs to DOGE, what companies are saying about the impact of MAGA policies

0
Tesla’s law firm drafts Delaware bill that could salvage Musk pay package

Tesla’s law firm drafts Delaware bill that could salvage Musk pay package

0
Coca-Cola takes on Olipop and Poppi with new prebiotic soda brand, Simply Pop

Coca-Cola takes on Olipop and Poppi with new prebiotic soda brand, Simply Pop

0
Lucid stock price forms descending triangle ahead of earnings

Lucid stock price forms descending triangle ahead of earnings

July 9, 2025
China’s AI gamble: 115,000 Nvidia chips at heart of geopolitical tech clash

China’s AI gamble: 115,000 Nvidia chips at heart of geopolitical tech clash

July 9, 2025
Linda Yaccarino resigns as X CEO following Grok  controversy

Linda Yaccarino resigns as X CEO following Grok controversy

July 9, 2025
Brazil’s Braskem shares surge on prospects of tax incentive bill backing petrochemical sector

Brazil’s Braskem shares surge on prospects of tax incentive bill backing petrochemical sector

July 9, 2025

    Get Smarter with Your Money – Sign Up for Free Financial Tips!


    Join our community of savvy savers and investors! By signing up, you'll receive weekly emails packed with personalized financial tips, budgeting hacks, and investment strategies tailored to your income level. Take control of your finances today – it’s free and only takes a minute!

    Recent News

    Lucid stock price forms descending triangle ahead of earnings

    Lucid stock price forms descending triangle ahead of earnings

    July 9, 2025
    China’s AI gamble: 115,000 Nvidia chips at heart of geopolitical tech clash

    China’s AI gamble: 115,000 Nvidia chips at heart of geopolitical tech clash

    July 9, 2025
    Linda Yaccarino resigns as X CEO following Grok  controversy

    Linda Yaccarino resigns as X CEO following Grok controversy

    July 9, 2025
    Brazil’s Braskem shares surge on prospects of tax incentive bill backing petrochemical sector

    Brazil’s Braskem shares surge on prospects of tax incentive bill backing petrochemical sector

    July 9, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved

    No Result
    View All Result
    • About us
    • Contacts
    • Email Whitelisting
    • Investing and Stock News
    • Privacy Policy
    • Terms and Conditions
    • Thank you

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved