Rand strengthens as dollar slips

The rand strengthened in early trade on Friday, as the dollar slipped on mounting worries over a slowdown in the United States and amid hopes that China’s economy would pick up pace following an easing of Covid-19 curbs.

At 08:45, the rand traded at R17.14 against the dollar.

The dollar index was last trading down 0.22% at 104.58.

Investors globally will be looking at the week ahead for rate decisions from a slew of central banks, with the Federal Reserve policy decision taking centre stage.

Like most emerging market currencies, the risk-sensitive rand, which has stabilised in recent days amid a pause in the political turmoil at home, is highly susceptible to global drivers such as the US monetary policy.

The government’s benchmark 2030 bond was little changed in early deals, with the yield down 1 basis point to 10.410%.