South Africa's rand at 22-month high on soft dollar as inflation fears ease

JOHANNESBURG: South Africa's rand hit its highest in 22 months early on Tuesday as the US dollar drifted lower after Federal Reserve officials calmed investor concerns about inflation forcing interest rates higher.

At 0649 GMT, the rand traded at 13.8550 against the dollar, 0.54% firmer than its previous close.

"The rand continues to occupy a limited trading range; the current levels in the rand sub-14.0000 remain attractive to USD buyers; these have, however, been in limited volumes," Nedbank analysts said in a client note.

The US dollar softened after dovish comments from Fed speakers supported the view that policy tightening in the United States was unlikely to happen any time soon.

Lower US interest rates boost the appeal of riskier but high-yielding assets like the rand.

In fixed income, the yield on the benchmark government bond due in 2030 was down 2 basis points to 8.94%, reflecting stronger prices.