JOHANNESBURG: South Africa's rand slipped early on Thursday, after surging overnight on dovish comments by the U.S. Federal Reserve which suggested its three-year drive to tighten monetary policy may be at an end.
At 0640 GMT, the rand traded at 13.3700 versus the dollar, 0.4 percent weaker than its previous close.
But it was still 1.7 percent stronger than its opening level on Wednesday, before the Fed kept interest rates steady and discarded its promises of "further gradual increases" in rates.
The rand has enjoyed a bumper start to 2019, rallying more than 7 percent against the U.S. currency, mainly because of expectations that the Fed would slow the pace of its monetary policy tightening.
Government bonds were firmer in early deals on Thursday, with the yield on the benchmark 2026 instrument down 12 basis points at 8.620 percent.
Recent domestic economic data has painted a picture of a halting recovery, with inflation well within the central bank's target range and retail sales rising late last year but mining performing weakly.
On Thursday, South African producer price inflation and trade balance data will be released.
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