South Africa's rand falls to 6-1/2 month low as global trade war escalates

Reuters
South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg January 17, 2013. REUTERS/Siphiwe Sibeko

JOHANNESBURG (Reuters) - South Africa's rand fell to 6-1/2 month lows early on Tuesday as U.S. President Donald Trump threatened new tariffs in an escalating tit-for-tat trade war with China, hitting sentiment in emerging markets. At 0705 GMT, the rand was 1.65 percent weaker at 13.875/dlr, its lowest since the start of December, surrendering all off the gains it made since President Cyril Ramaphosa was elected head of the ruling ANC. Technically, the rand could be in for a rebound as momentum indicators tracked by chartists show it has now been thrust deeply into oversold territory. In fixed income, the yield for the benchmark government bond due in 2026 was up 6 basis points to 9.16 percent. (Reporting by Nomvelo Chalumbira; Editing by Ed Stoddard and Andrew Heavens)