Johannesburg — The South African rand weakened in early trade on Thursday, giving up some earlier gains after U.S. Treasury yields slipped from 16-year highs.
At 0728 GMT, the rand traded at 19.4200 against the dollar, about 0.4% weaker than its previous close.
The dollar last traded around 0.04% stronger against a basket of global currencies.
On Thursday, a plunge in oil prices and softer U.S. labour data helped pull Treasury yields off 16-year peaks, weakening the dollar and giving some reprieve to emerging market currencies such as the rand in earlier trade.
The rand has already lost about 2.2% against the greenback this month.
Like other risk-sensitive currencies, the rand often takes cues from international factors like changes in U.S. yields, in the absence of major local data points.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI) last traded about 0.1% higher.
South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 3 basis points to 11.055%.
*Tannur Anders, editing: Bhargav Acharya & Bernadette Baum – Reuters
