The South African (SA) Rand weakened in early trade on Friday, pressured by a firmer United States Dollar, while oil market developments played an increasingly important role in shaping the currency’s direction.
The Rand traded at 16.85 against the Dollar , about 0.5% down from its previous close.
The Dollar has emerged as one of the clearest safe-haven winners, strengthening over 2% so far this month.
The Dollar rose 0.2% against a basket of currencies as Federal Reserve Chairpeson Jerome Powell signalled one rate cut this year.
“The local currency will continue to take its cue from international moves, with a keen focus on what the oil price does,” said Andre Cilliers, Currency Strategist at TreasuryONE.
Domestically focused traders will next week look to the composite leading business cycle indicator by the Central bank, and producer inflation by the statistics agency for clues on the health of Africa’s most industrialised nation.
SA’s benchmark 2035 government bond was firmer in early deals, as the yield fell 5.5 basis points to 8.995%.
–Reuters–
