Rand skids on Donald Trump’s ‘get ready Russia’ tweet

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Rand skids on Donald Trump’s ‘get ready Russia’ tweet

4:10 CAT | 11 Apr 2018

The rand lost 8 cents within minutes after a tweet by US President Donald Trump warning Russia against countering missiles the US intends to fire at targets in Syria.

The local unit weakened abruptly from R12.04/$ to R12.12/$ in early afternoon trade, after Trump’s tweet hit emerging market currencies. By 14:40 it had strengthened to R12.056.

“President Donald Trump has sent a stern warning to Russia in a tweet, this has sent emerging market currencies into a spin. [The] Russian ruble lost around 3% so far today, dragging the ZAR with it,” said TreasuryONE in a snap note.

The local currency was fairly steady in early trade on Wednesday morning, after opening at R12.02 to the greenback.

At 13:25 it was trading at R12.11/$, down 0.6% on the day.

Trump sent a tweet just before 13:00 saying that the US would be launching missiles at targets in Syria. His tweet was in reaction to reports that Russia had said it would shoot down any missiles launched by the US.

Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia, because they will be coming, nice and new and “smart!” You shouldn’t be partners with a Gas Killing Animal who kills his people and enjoys it!

— Donald J. Trump (@realDonaldTrump) April 11, 2018

Our relationship with Russia is worse now than it has ever been, and that includes the Cold War. There is no reason for this. Russia needs us to help with their economy, something that would be very easy to do, and we need all nations to work together. Stop the arms race?

— Donald J. Trump (@realDonaldTrump) April 11, 2018