South African rand holds on to gains against dollar

South Africa’s rand was steady against the dollar on Friday, as the local currency held onto recent gains amid improved risk appetite and positive sentiment at home.

At 0758 GMT, the rand traded at 17.1975 against the dollar, not far from its previous close.

The rand has been on an upward trajectory since a big interest rate hike by the Federal Reserve last week, hitting repeated 20-month highs.

Analysts say the improvement in South Africa’s risk profile following the formation of a coalition government after an election in May has also contributed to the currency’s strength.

On the stock market, the Top-40 index was down about 0.4%.

South Africa’s benchmark 2030 government bond was stronger, with the yield down 4 basis points to 8.79%.