Rand strengthens as dollar dips

The rand strengthened in early trade on Friday after the dollar eased as a hawkish rate hike from the European Central Bank (ECB) lifted the euro.

At 0625 GMT, the rand traded at R17.41 against the dollar, 0.63% stronger than its previous close.

The ECB raised its key interest rates by an unprecedented 75 basis points on Thursday and promised further hikes.

The dollar index, which measures the currency against six rivals, was last down 0.6% to 108.86 after hitting a two-decade high of 110.79 earlier in the week.

Like most emerging market currencies, the rand tends to take its cues from global drivers in the absence of major local economic data points.

Next week, investors in South Africa will be looking at mining and retail sales figures for clues on the health of economy.

The government’s benchmark 2030 bond fell in early deals, with the yield up 5 basis points to 10.385%.

Source: moneyweb.co.za