The USD/ZAR currency pair extended losses on Monday, as the Rand continued to draw support from rising price of Gold.
The precious metal surged to a three-week high, as uncertainty stemming from the US Supreme Court’s decision to strike down US President Donald Trump’s sweeping tariffs prompted investors to flock to safe-haven assets.
The US Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were unlawful without approval from Congress.
In response to the Supreme Court decision, Trump indicated an intention to push forward with a new 15% global tariff using different trade statutes. Trump called the judgment a “disgrace” and invoked a section of the 1974 Trade Act to implement the 15% global tariff for up to 150 days. He said the move aims to quickly address “international payment problems.”
Investors are also watching Federal Reserve Governor Christopher Waller’s Monday speech in Washington. He is expected to address the US economic outlook.
Meanwhile, ZAR traders now set their focus on Finance Minister Enoch Godongwana’s budget speech on Wednesday, as they expect further fiscal consolidation and measures to stabilize public debt.
The USD/ZAR currency pair was last down 0.23% on the day to trade at 15.9898.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
