Rand extends gains after key rate left unchanged

The rand was stronger in early trade on Friday, extending its Thursday gains after the central bank kept its main interest rate unchanged.

At 0644 GMT, the rand traded at R18.77 against the dollar.

The dollar last traded around 0.03% weaker against a basket of global currencies.

South Africa’s central bank stuck to its previous hawkish tone on Thursday as it kept its main lending rate unchanged for the third meeting in a row, boosting the rand, despite inflation quickening in October.

Next week investors will turn their attention to supply-side inflation when producer price index data is released.

South Africa’s benchmark 2030 government bond was marginally stronger in early deals, with the yield down 0.5 basis point at 10.120%.