Rand strengthens as dollar eases

The rand strengthened in early trade on Friday as the dollar pulled back slightly, with investors globally awaiting a US payrolls report for further clues on the Federal Reserve’s rate-hike trajectory.

At 0640 GMT, the rand traded at 18.27 against the dollar, 0.73% stronger than its previous close.

Like most risk-sensitive emerging market currencies, the rand weakened on Thursday, after the Fed signalled that it would not slow down the pace of its interest rate hikes.

The dollar index, which measures the currency against six major rivals, was last down 0.4% at 112.51.

The South African government’s benchmark 2030 bond was stronger in early deals, with the yield down 6.5 basis points to 10.730%.