The South African (SA) Rand strengthened on Friday as gold prices edged higher and remained on course ​for a third weekly gain, while a weaker ‌United States (US) Dollar and the US Treasury’s bond buyback initiative boosted sentiment toward risk-sensitive currencies and precious metals.

The Rand ​traded at 16.0550 against the Dollar, about 0.4% ​up from its previous close.

US Treasury Secretary Scott ⁠Bessent said he may further increase the governments repurchases of ​Treasuries.

That came after the Treasury said it would double the ​size of buybacks on longer-dated securities over the next quarter.

The dollar headed for a weekly loss, making greenback-priced bullion more affordable ​for buyers overseas.

Gold, SA’s key export, edged higher ​on Friday and was on track for a third consecutive weekly gain, ‌supported ⁠by a weaker Dollar and the US Treasury’s bond-buyback move.

Like other risk-sensitive currencies, the Rand often takes cues from global developments when there is little domestic economic ​data on the ​calendar.

“The rand ⁠is trading firmer at R16.06 on the back of the softer dollar, and generally ​firmer EM and commodity-driven currencies,” said Andre Cilliers, ​currency ⁠strategist at TreasuryONE, referring to emerging markets.

On the Johannesburg Stock Exchange, the Top-40 index was last up 2% in ⁠early ​trade.

SA’s benchmark 2035 government bond ​was also firmer in early deals, as the yield fell 2.5 basis ​points to 8.54%.

–Reuters–