South African rand retreats against sturdy dollar after Trump swearing in
JOHANNESBURG, Jan 21 (Reuters) - South Africa's rand retreated early on Tuesday against a buoyant dollar after U.S. President Donald Trump announced a flurry of policy changes following his Monday inauguration.
At 0712 GMT, the rand traded at 18.6150 against the U.S. dollar ZAR=D3, about 0.6% weaker than its previous close. It gained about 1% on Monday ahead of Trump's swearing in.
The dollar =USD last traded about 0.4% stronger against a basket of currencies.
Trump did not take immediate action to raise tariffs, a focus for global markets, but said the world's biggest economy could impose tariffs on Canada and Mexico in the near future.
"I think we need to wait until Trump's government is fully installed before decisions come on tariffs," said Adam Phillips, treasury specialist at Umkhulu Treasury.
Like other risk-sensitive currencies, the rand often takes direction from global drivers like U.S. fiscal policy in addition to local factors.
Domestically focused investors will on Tuesday look to November mining production data ZAMNG=ECI expected at 0930 GMT and South African President Cyril Ramaphosa's address to the World Economic Forum later in the day.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index .JTOPI last traded about 0.1% down.
South Africa's benchmark 2030 government bond ZAR2030= was stronger, with the yield down 2.5 basis points to 9.145%.
(Reporting by Tannur Anders: Editing by Neil Fullick)
((Tannur.Anders@thomsonreuters.com))
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