Rand weakens after this week's strong rally

South Africa&#039;s rand slid in early trade yesterday against a buoyant US dollar, slowly unwinding a rally that had sent the currency up more than 2% on Tuesday.At 0632 GMT, the rand traded at 18.2200 against the US dollar, about 0.1% weaker than its previous close.The US dollar was up around 0.1% against a basket of global currencies.The rand leapt on Tuesday after softer-than-expected US consumer inflation data boosted expectations that the Federal Reserve might be done with interest rate hikes.But the South African currency struggled to firm on Wednesday despite better-than-expected local retail sales data.Risk"With limited key US data until the end of the month, the risk is that we just repeat the pattern seen after the good payrolls figure: global markets, and so the ZAR, slowly unwind the rally," Rand Merchant Bank analysts said in a morning briefing.Like other risk-sensitive currencies, the rand often takes its cues from global factors such as US economic data.Andre Cilliers, currency strategist at TreasuryONE, said in a note he expected to see some consolidation and profit-taking given the scale and pace of the rand&#039;s strengthening.South Africa&#039;s benchmark 2030 government bond was stronger in early deals, with the yield down 1.5 basis points to 10.190%. – Fin24

Rand weakens after this week's strong rally

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Rand weakens after this week's strong rally

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