JOHANNESBURG: The South African rand dipped in early trade on Friday, as the dollar gained on bets the US Federal Reserve will keep raising interest rates despite the risks of recession.
At 0657 GMT, the rand traded at 18.3375 against the dollar, about 0.2% weaker than its previous close.
The rand has been mainly at the mercy of global drivers this week, advancing in the early part of the week before falling back.
It is now trading near last Friday’s closing level of 18.3575. Domestic economic data this week were mixed, with September inflation slowing to 7.5% year on year from 7.6% the previous month, in line with analysts’ forecasts.
South African rand pauses; fragile risk appetite seen weighing
But retail sales disappointed, rising 2.0% year on year in August compared to expectations for 4.2% growth.
Next week, attention turns to the South African government’s mid-term budget.
A Reuters poll published on Friday predicted the National Treasury would be able to trim this year’s projected budget deficit thanks to buoyant mining receipts.
The government’s benchmark 2030 bond was weaker in early deals, with the yield up 9.5 basis points to 11.04%.
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