Johannesburg - The rand pulled back from its weakest level in three weeks on Thursday to edge firmer against the dollar as a sell-off lost steam ahead of a much-anticipated European Central Bank (ECB) policy meeting later in the session.
By 08:23 SA time the rand had inched 0.02 percent firmer to 11.1450 per dollar, after slumping to a 20-day low in the previous session as risk-off sentiment towards emerging market assets pummelled the local unit.
“Traders have locked in profits and stepped to the side-lines ahead of the European Central Bank's monetary policy statement today and the US jobs report tomorrow,” analysts at NKC Independent Economists said in a note.
The ECB is set to stick to the path of pumping millions into the banking system to boost flagging economic activity when it meets on Thursday, opting to wait for its stimulus to unfold before considering further steps.
Weakness in the eurozone, along with a Chinese economy showing signs of cooling, have hurt emerging market currencies as investors increasingly look to the dollar as a less riskier option.
Local bonds were flat, with the yield on the paper due in 2026 unmoved at 8.03 percent. - Reuters