Rand recovers slightly after two-week slump

The rand recovered some ground early on Friday after a two-week slump while the US dollar eased on global markets.

At 0720 GMT, the rand traded at R15.93 against the dollar, 0.5% stronger than its Thursday close.

It was still on track for a loss of more than 1% against the dollar this week after falling over 6% last week.

The dollar index hit a 20-year high on Thursday, buoyed by bets on rising US interest rates and worries about growth in Europe and China, before falling back on Friday.

Early on Friday, central bank data showed private sector credit expanded 5.89% year on year in March, greater than February’s 3.62% increase. Later in the day March budget and trade numbers are due to be published.

On the Johannesburg Stock Exchange, the Top-40 index was up around 2.2% in early trade. The government’s benchmark 2030 bond was also stronger, with the yield falling 3.5 basis points to 9.98%.