JOHANNESBURG: South Africa’s rand recovered some losses on Friday after a slight improvement in risk sentiment. At 0801 GMT, the rand traded at 18.3325 against the dollar, about 0.4% stronger than its previous close.
Trade in the rand, like most emerging market currencies, has been volatile this week after the Federal Reserve on Wednesday struck a hawkish tone in its interest rate outlook for the year ahead.
Andre Cilliers, currency strategist at TreasuryONE, said liquidity constraints during the holiday season could amplify swings in the local currency.
“Near-term volatility (is) likely to persist,” Cilliers said.
South African rand sees tailwind from local inflation and retail data
There are no major local economic data releases scheduled for next week.
On the stock market, the Top-40 index was down about 0.2%. South Africa’s benchmark 2030 government bond was marginally stronger, with the yield down 1.5 basis points to 9.10%.
American Dollar Exchange Rate