Rand weaker in early trade, stocks open higher

The rand eased in early trade on Friday, losing gains from the previous day made on the biggest rate hike in nearly two decades delivered by the central bank in order to tame soaring inflation.

In early trade the rand was at R17.03 against the dollar, 0.06% weaker than its previous close.

The rand rose against the dollar on Thursday after the central bank hiked its main lending rate by 75 basis points to 5.50%.

However, Commerzbank analysts said in a research note that the gains were limited.

“In view of domestic risks, the rand is likely to have difficulties to stand its ground in a challenging environment and come under depreciation pressure in case of risk-off,” the analysts added.

On the stock market, the Top-40 and the broader all-share indexes rose more than 0.5% in early trade.

The government’s benchmark 2030 bond was stronger in early deals, with the yield down 13.5 basis points to 10.615%.