South African rand remains subdued amid dollar strength
The South African rand weakened this week, along with other emerging market currencies, as the dollar firmed on uncertainty over further US rate cuts following the Federal Reserve's more conservative positioning on interest rates.
At 0725 GMT the rand traded at 17.31 against the dollar, about down 0.2% from its previous close.
On Wednesday, the US central bank cut interest rates by a quarter of a percentage point for the second time this year, taking the benchmark overnight rate to a target range of 3.75%-4.00%.
"Attention has now fallen back to (Fed Chair Jerome) Powell's comments after the rate cut, where he told a press conference that a rate cut in December was not a dead certainty," said Adam Phillips, treasury specialist at Umkhulu Treasury.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as US policy and economic data.
The dollar last traded 0.2% stronger against a basket of currencies as markets price in the probability of a 25-basis-point cut from the Fed in December.
Domestically-focused traders will next week look to a monthly South African purchasing managers' index (PMI) survey which will shed light on sentiment in the country's manufacturing sector.
On the Johannesburg Stock Exchange, the Top-40 index was last down 0.3% in early trade.
South Africa's benchmark 2035 government bond was weaker in early deals, as the yield rose 5 basis points to 8.865%.
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