Rand firmer on risk appetite boost

Johannesburg - The rand firmed against the dollar early on Friday, holding on to a one-week high buoyed by risk appetite after a string of disappointing data releases from the United States.

At 09:08, the rand traded at R14.2015/$, 0.58% stronger from Thursday's New York close.

Since the previous session, the currency has been trading at its firmest levels since April 21 as the dollar faded after economic growth in the US braked to its slowest in two years.

The weak growth figures came after the US Federal Reserve on Wednesday left its benchmark lending rate unchanged and suggested it was in no hurry to tighten monetary policy, cheering global risk appetite in the process.

"The rand rally is getting going again, but to accelerate it needs ongoing support from the dollar, larger capital flows and a break through key levels," said Rand Market Bank currency strategist John Cairns in a note.

"The dominant issue in the rand outlook remains the dollar. Today’s event risk on this front comes from US personal income and spending data this afternoon."

Locally, focus was on March trade data due at 14:00.

Government bonds also strengthened, with the yield for the benchmark instrument due in 2026 falling 5.5 basis points to 8.990%.

On the bourse, the Top 40 fell 0.5% in early trade.