The dollar index held steady overnight then rose as European markets opened, before slipping to 91.807 at 1237 GMT, down by less than 0.1%.
Markets are in this flux period where they're gripping on to marginal bits of information, but there's nothing to define a new broad dollar trend until we get some more colour from the Federal Reserve tomorrow.
Rand was 0.54% weaker at 15.4350 per dollar, having earlier plunged to a session-low 15.5700, its weakest since Jan. 12 in a fourth straight day of losses.
"We continue to believe that the domestic currency will average weaker in Q2.21, around R15.40/USD, with high risks to the downside."
In a press release following figures that showed the economy shrank 4.1% last year, the ministry said supportive monetary policy, widespread vaccinations, fiscal consolidation and structural reforms will boost confidence as the year progresses.
"Inflation expectations... have risen quite strongly in the US, in Sweden and in the euro zone," Floden said in a speech.
"Our judgement is that inflation pressure is, nevertheless, weak and will remain weak for a while and we must therefore continue to have expansionary monetary policy."
All 15 economists polled by Reuters had said they expected the monetary policy committee to keep rates steady after doing so ever since cutting them from 0.25% early last April.
Central bank officials have expressed reluctance to lower the key rate from an all-time low to zero or into negative territory despite a strong shekel and three lockdowns.
Governor Naci Agbal hiked the one-week repo rate by 675 basis points in November and December to pull the lira up from a record low, prompting a jump in foreign investment inflows.
In the last two months the bank has held rates steady at 17% - the highest in any advanced or emerging economy.
Dedek spoke in response to an analyst question about the bank's alternative forecast scenario that saw prolonged anti-pandemic measures.
The bank's board said on Thursday that it saw substantial risks to the baseline outlook which could mean smaller need for interest rate tightening than predicted.
"The simple point I'd make is this: the last time the committee considered this question, if my memory serves me right, was in 2018. The world has changed a lot since 2018."
Earlier on Thursday the BoE said its policymakers had asked staff to start work "to reconsider the previous guidance.
