The USD/ZAR currency pair rose on Tuesday, with the Rand retreating from recent highs, as US President Donald Trump’s new tariff threats over Greenland sparked risk aversion.
Trump said over the weekend that the US would implement a wave of increasing tariffs on European allies until it is allowed to acquire Greenland. Trump said the US would impose a 10% tariff on imports from several EU countries that oppose the Greenland proposal.
He said on Truth Social that Greenland was imperative for national and global security.
Market players are now expecting the EU’s response to US tariff threats.
Meanwhile, Rand traders will be paying close attention to local CPI inflation figures, due on Wednesday, for fresh clues over price pressures within Africa’s most industrialized economy and the South African Reserve Bank’s policy trajectory.
Data showed earlier on Tuesday that mining production in South Africa had contracted 2.7% year-on-year in November, confounding market forecasts of a 3.9% expansion. It has been the first decline in mining activity since April 2025.
Gold production in the country shrank 6% year-on-year in November.
The USD/ZAR currency pair was last up 0.50% on the day to trade at 16.4362.
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