South Africa's rand weakened over one percent on Friday as a recent rally failed to hold after a string of solid data from the US lifted the dollar, reigniting bets on an early rate hike there. At 1552 GMT, the rand had slipped 1.2 percent to 13.3475, stretching the unit's losses against the greenback close to 2.5 percent for the week.
Data released late on Thursday showed the US economy grew faster than initially thought in the second quarter, boosting views that the Federal Reserve will raise interest rates by year-end. A first rate hike in over six years by the world's largest economy is expected to trigger an exodus from risky emerging markets like South Africa as investors seek safer bets in the US "Return to relative normality on global markets has eased some pressure on the local unit," analysts at NKC African Economics said.
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