Rand rebounds as US dollar trades lower

The rand strengthened in early trade on Friday as the dollar slipped after investors appeared to shift focus away from US interest rate considerations to global stock markets.

At 0704 GMT the rand had firmed by 0.49% to 18.16 against the dollar.

It had hit a 29-month low on Thursday after higher than expected US consumer prices data, raising the likelihood of another large increase to US interest rates next month.

“Heading into the final trading session for the week, market sentiment remains somewhat buoyant after yesterday’s sharp reversal,” ETM Analytics economists said in a note, adding that equities and emerging market currencies remain on the front foot.

On the stock market, the Top 40 and the broader all-share indexes rose by about 2% in early trade.

The government’s benchmark 2030 bond was stronger in early deals, with the yield down 11.5 basis points at 10.730%.