Rand slightly stronger as dollar slips

The rand firmed slightly in early trade on Thursday as the dollar eased a bit even though the US Federal Reserve’s comments boosted expectations of a rate hike in July.

At 09:47, the rand traded at R18.79 against the dollar.

The dollar last traded at 103.180 against a basket of global currencies, around 0.155% weaker, reversing earlier gains.

“The Fed’s latest forecasts predict a mild recession in the US later this year followed by a moderately paced recovery,” said First National Bank in a research note.

Like other emerging market currencies, the risk-sensitive rand often takes cues from global drivers such as the dollar, in the absence of local catalysts.

On Friday the South African Reserve Bank will publish the country’s gold and foreign exchange reserves data.

South Africa’s benchmark 2030 government bond was slightly stronger in early deals, with the yield down 0.5 basis points to 10.510%.