South African rand edges higher against struggling dollar

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JOHANNESBURG (Reuters) – South Africa’s rand edged higher early on Friday as the dollar struggled near a one-month low, boosting emerging market currencies.

At 0605 GMT, the rand traded at 14.3325 versus the dollar, 0.4 percent stronger than its previous close.

Government bonds were flat, with the yield on the benchmark instrument maturing in 2026 at 8.97 percent.

The rand is on course for a 0.5 percent gain against the dollar this week as the U.S. currency has been weighed down by a subdued outlook towards U.S. interest rates and the economy. [nL3N1YQ04N]

That comes as a reprieve after a year in which the rand has lost more than 13 percent against the dollar.

It has been hurt by weaker-than-expected economic data in South Africa and contagion from emerging market shocks in Turkey and Argentina, among other factors.

Economists will scrutinise South Africa’s budget balance data when it is released later in the day.

Reporting by Alexander Winning; Editing by Sai Sachin Ravikumar

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