(Reporting by Alexander Winning; editing by Eileen Soreng)
JOHANNESBURG, March 17 (Reuters) - The South African
rand gained against a weaker dollar early on Friday, capping a
volatile week fuelled by fears of a global banking crisis and
the implications for monetary policy.
At 0656 GMT, the rand traded at 18.3300 versus the dollar , about 0.4% stronger than its closing level on
Thursday.
The dollar was down about 0.4% against a basket of
global currencies.
Action to rescue First Republic Bank in the United
States on Thursday boosted risk appetite globally on Friday. The
move comes after the collapse of two other mid-size U.S. banks
over the past week and an announcement by Credit Suisse that it would borrow up to $54 billion from the Swiss central
bank.
The focus will now shift to the U.S. Federal Reserve's
monetary policy meeting next week, with some investors hoping it
could slow its aggressive interest rate hikes to ease the stress
on the financial sector.
No major South African economic data releases are due on
Friday, so the rand will likely take its cue from global
drivers.
Economic data released by Statistics South Africa this week
highlighted an economy struggling at the start of 2023, weighed
down by crippling power cuts.
The government's benchmark 2030 bond was
marginally weaker on Friday, with the yield up 1 basis point at
10.110%.
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