JOHANNESBURG (Reuters) -South Africa’s rand weakened on Thursday, taking its cues from a stronger dollar in the absence of major data releases.
At 1558 GMT, the risk-sensitive rand traded at 19.1500 against the dollar, about 0.7% weaker than its previous close.
The dollar index was last trading up around 0.04% against a basket of currencies.
The U.S. dollar has risen in recent weeks as tensions in the Middle East, strong U.S. economic data and sticky inflation sent investors towards the safety of the dollar.
A Reuters poll found on Thursday that South Africa’s central bank is expected to deliver only 50 basis points of interest rate cuts this year, less than earlier projected as inflation is seen taking slightly longer to return to the Reserve Bank’s comfort zone.
On the stock market, both the Top-40 index and the broader all-share index closed around 0.4% higher.
South Africa’s benchmark 2030 government bond was stronger, with the yield down 2.5 basis points to 10.680%.
(Reporting by Bhargav Acharya and Anait Miridzhanian; Editing by Sharon Singleton and Barbara Lewis)
