Johannesburg — South Africa’s rand weakened on Friday in line with other emerging market currencies as the U.S. dollar gained on global risk sentiment.
At 1523 GMT, the rand traded at 18.98 against the dollar , about 0.8% weaker than its previous close.
The dollar was up about 0.32% against a basket of global currencies, and set for a second week of gains.
“The dollar reversed all of Wednesday’s post-FOMC losses yesterday after the Swiss National Bank surprised markets by cutting its benchmark rate by 25 basis points, and U.S. economic data surprised to the top side,” said Andre Cilliers, Currency Strategist at TreasuryONE.
There was further support for the dollar from a dovish Bank of England outlook, he said in a research note.
Trade was expectedly thin on Friday, since Thursday was a public holiday in South Africa. There were no economic data releases due.
On the stock market, the Top-40 index closed up 1.35% while the broader all-share ended 1.15% higher.
South Africa’s benchmark 2030 government bond was flat, with the yield at 10.425%.
Reporting by Nellie Peyton with additional reporting by Bhargav Acharya; Editing by Toby Chopra and Angus MacSwan – Reuters
