South Africa’s rand firmed against the dollar in early trade on Friday as data showed private sector credit demand growth rose in August, with focus on more economic data due later in the day that could provide further clues on the health of the economy.
At 0643 GMT, the rand traded at 13.4825 per dollar, 0.24 percent firmer than its overnight close.
The rand has been under pressure this week as renewed hopes for U.S. tax reform, as well as comments from Federal Reserve Chair Janet Yellen that stressed the need for gradual interest rate hikes, supported the dollar.
The currency opened weaker on Friday but turned firmer after data showed growth in South Africa’s private-sector credit demand quickened to 5.98 percent in August from 5.71 percent in July.
Focus on the day also on budget data for August due later in the session, which analysts expects to show revenue for the fiscal year 2017/18 was underperforming.
Eyes also on August trade data due at 1200 GMT.
Stocks were set to open higher at 0700 GMT, with the JSE securities exchange’s Top-40 futures index up 0.37 percent.
In fixed income, the yield for the benchmark government bond due in 2026 was down 1 basis point to 8.625 percent.
Reuters
