JOHANNESBURG: South Africa's rand firmed in early trade on Thursday, as the dollar faltered after the U.S. Federal Reserve Chairman suggested they may be nearing an end of their three-year rate tightening cycle, boosting interest in riskier assets.
* At 0630 GMT, the rand traded at 13.7500 per the dollar, 0.25 percent firmer than its New York close of 13.7850 on Wednesday.
* Federal Reserve Chair Jerome Powell said on Wednesday that U.S. policy rates were "just below" neutral, comments that many investors read as signalling the Fed's three-year tightening cycle is drawing to a close.
* "The mighty dollar is not looking all that mighty this morning after the Federal Reserve dealt it a blow last night," Bianca Botes, treasury manager at Peregrine Treasury Solutions, said in a note.
* "A slowdown in the pace of rate hikes by the Fed is great news for emerging markets with foreign debt exposure," said Botes.
* South African-focused investors are waiting for the release of October producer price inflation numbers due at 0930 GMT.
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