Markets, rand stronger as Trump backtracks on Fed attack, China tariffs

Stock markets were enjoying a much-needed relief rally in Asia on Wednesday after US President Donald Trump said he had no plans to fire the head of the Federal Reserve, and hinted at lower tariffs for China.

The dollar jumped sharply against peer currencies after Trump walked back the threats to dismiss Fed Chair Jerome Powell that had badly shaken investor confidence in US assets, although those gains faded somewhat as the day progressed.

The rand continued to strengthen, and traded at R18.55/$ on Wednesday morning – its strongest level in three week.

Trump also reiterated he wanted to do a deal with China where tariffs would not be anywhere near 145%, adding that he would set the terms of a deal if Beijing did not enter talks.

US Treasury Secretary Scott Bessent was reported earlier on Tuesday saying that he believes there will be a de-escalation in US-China trade