The South African (SA) Rand edged up in early trade on Friday on a broadly softer Dollar, taking its cue from global risk appetite as lingering Middle East tensions kept investors on edge.
The Rand traded at 16.2875 against the Dollar, about 0.3% up from its previous close.
The Dollar index , which measures the greenback against a basket of currencies, was last down about 0.1%.
Asian emerging-market peers also rose across the board, benefiting from softer pricing of United States (US) Federal Reserve rate hikes that weighed on the Dollar.
“Heading into the weekend, and with little in the way of data to look forward to, most of the direction will come from developments in the Middle East, the performance of global equity markets and broader risk appetite,” ETM Analytics said in a note.
Like other risk-sensitive emerging market currencies, the rand has been at the mercy of global market sentiment, particularly since the start of the US and Israeli war with Iran on February 28.
SA’s benchmark 2035 government bond was firm in early deals, as the yield fell 5 basis points to 8.325%.
–Reuters–
