Rand firmer as technicals, easing dollar offer support

The rand firmed slightly early on Friday, extending its recovery from a near 7-month low against the dollar hit this week with the help of technical factors and an easing dollar.

At 0615 GMT, the rand traded at 13.55 per dollar, 0.3% firmer than its close on Thursday.

The rand has had a volatile week, falling to its weakest since November 27 on Tuesday as US-China trade war fears hit risk appetite. Sentiment has also been weighed by a string of poor local economic data.

But the currency had been in oversold territory according to momentum indicators tracked by charters, and this offered the currency technical support.

“This morning the rand trades marginally firmer despite the disappointing local data,” Nedbank analysts wrote in a note. “As has been alluded to recently the rand has potential for a short term technical correction to the downside, over the most recent sessions, the current levels around the mid 13.50s have held steady.”

In fixed income, the yield for the benchmark government bond due in 2026 was down 0.5 basis points to 8.915%.