Rand set for weekly losses as dollar gains

The rand looked set for weekly losses on Friday as the prospect of a more aggressive pace of US Federal Reserve interest rates hikes supported the dollar.

At 0620 GMT, the rand was largely flat at around 14.76 against the dollar. The currency has weakened 1.2% since Monday.

The dollar index is up 1.3% this week, which would be its biggest advance in one month, backed by hawkish remarks from several Federal Reserve policy makers who are calling for a faster pace of interest rate increases to curb rapid inflation.Read full story

Higher rates in developed markets drain capital from higher-yielding but riskier emerging markets such as South Africa, weighing on their currencies.

On Thursday, the rand was also unsettled by news that the country’s Treasury Director-General Dondo Mogajane will leave his post in June to pursue opportunities outside the public sector.

In fixed income, the yield on the benchmark 2030 government bond ZAR2030= was down 0.5 basis points to 9.55%.