South African rand stronger as dollar trades near multi-week lows

  • Reuters
  • Forex News
South African rand stronger as dollar trades near multi-week lows
Credit: © Reuters.

JOHANNESBURG, April 23 (Reuters) - South Africa's rand strengthened on Friday as the U.S. dollar traded near multi-week lows, after a directionless week in which it took its cues from moves on global markets.

At 0730 GMT, the rand ZAR=D3 traded at 14.2700 versus the dollar, roughly 0.3% stronger than its previous close.

The dollar index .DXY , which tracks the greenback against a basket of major currencies, fell 0.3%.

The U.S. Federal Reserve meets next week, and expectations are that Chairman Jerome Powell will repeat the message that talk of tapering is premature, pressuring Treasury yields and the dollar. rand reacted little to data on Wednesday showing inflation ZACPIY=ECI rose to 3.2% year on year in March from 2.9% in February, as price growth is near the lower end of the central bank's 3% to 6% target range. Predictions are that the bank will keep its main lending rate ZAREPO=ECI at its current level of 3.5% throughout 2021. the Johannesburg stock market, the Top-40 .JTOPI index was down 0.06% early on Friday.

Government bonds dipped, as the yield on the 2030 instrument ZAR2030= rose 3.5 basis points to 9.16%.

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