South African rand wobbles as markets await Trump's tariffs

JOHANNESBURG, March 27 (Reuters) - South Africa's rand weakened on Thursday as markets fretted over U.S. President Donald Trump's tariffs due next week.

At 1407 GMT, the rand traded at 18.3375 against the U.S. dollar ZAR=D3, about 0.4% weaker than its previous close.

The dollar =USD was last down about 0.3% against a basket of currencies.

Trump on Wednesday announced 25% tariffs on all vehicles and foreign-made auto parts imported into the U.S. to go into effect after midnight on April 3.

These tariffs are the latest salvo in an escalating global trade war which investors worry will hurt growth and could stoke inflation in the world's biggest economy.

Like other risk-sensitive currencies, the rand often takes direction from global drivers like U.S. economic policy in addition to local factors.

Domestic-focused investors looked to South Africa's producer inflation data ZAPPIY=ECI on Thursday, which was at 1.0% year on year in February, down from 1.1% in January, statistics agency data showed.

Data released by the South African Reserve Bank on Thursday showed foreign direct investment inflows of 7.5 billion rand in the fourth quarter, compared to outflows of 3.2 billion in the third quarter.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded down about 0.4%.

South Africa's benchmark 2030 government bond ZAR2030= was weaker, with the yield up 3.5 basis points at 9.145%.