JOHANNESBURG (Reuters) – South Africa’s rand firmed against the dollar on Friday after U.S. data showed producer prices unexpectedly fell in December, raising expectations of an early Federal Reserve rate cut.
At 1549 GMT, the rand traded at 18.6050 against the dollar, about 0.3% stronger than its previous close though it remained rangebound on lack of domestic impetus. It has traded around the 18.6 to 18.7 mark since Monday.
The dollar index was last trading up 0.04% against a basket of major currencies after the producer prices data.
Trading in the rand is expected to gain momentum next week as schools reopen and the economy picks up after the holidays. The focus will turn towards monthly retail sales and mining production figures.
Shares on the Johannesburg Stock Exchange rose, with the blue-chip Top-40 index closing 0.7% higher.
South Africa’s benchmark 2030 government bond was stronger, with the yield down 6 basis points to 9.675%.
(Reporting by Nellie Peyton and Bhargav Acharya; Editing by Rashmi Aich and Emelia Sithole-Matarise)
