The South African (SA) Rand was marginally weaker in early trade on Friday, with its ​future direction likely to be determined by the ‌outcome of weekend talks between the Unite States (US) and Iran in Islamabad.

Rand traded at 16.42 against ​the Dollar, about 0.1% weaker than its previous ​close.

Despite the modest fall, the risk-sensitive currency ⁠was set to end the week more than ​3% stronger versus the dollar.

The rand surged on Wednesday ​after US President Donald Trump announced a two-week ceasefire with Iran and has held most of those gains since.

Adam ​Phillips, Treasury Specialist at Umkhulu Treasury, said in ​a morning note that the market mood was “steady but nervous”. For ‌the ⁠rand, “it all centres on (the talks in) Islamabad this weekend,” Phillips added.

SA will hold its weekly inflation-linked bond auction on Friday, but no major domestic ​economic data ​is scheduled ⁠for release.

February manufacturing production figures published on Thursday showed the sector was weak before ​the Iran war.

Africa’s biggest economy had ​started to build ⁠momentum last year and investor confidence was on the rise.

Days before the Middle East conflict erupted ⁠the ​SA government predicted growth would ​accelerate again this year to 1.6%, but that forecast will probably ​be revised.