Rand weakens as dollar bounces back

The rand weakened in early trade on Thursday, as the US dollar regained its footing after a recent dip.

At 0642 GMT, the rand traded at R18.95 against the dollar, 0.67% weaker than its previous close.

The dollar index, which measures the currency against a basket of major rivals, bounced around 0.4% to 113.50 and isn’t far below its 20-year high of 114.78.

“Volatility is expected to remain the order of the day for some time to come, with the USD-ZAR looking increasingly comfortable around the R18.00 mark,” economists at ETM Analytics said in a note.

The government’s benchmark 2030 bond was almost unchanged in early deals, with the yield at 10.805%.

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