JOHANNESBURG: The South African rand was weaker in early trade on Wednesday as the dollar clawed back some losses on global markets, while local credit extension slowed more than expected.

At 0715 GMT, the rand traded at 18.5525 against the dollar, about 0.5% weaker than its previous close.

Central bank data showed private sector credit grew 5.87% year on year in July, down from 6.25% in June.

The dollar gained as investors were looking to labour market data for clues on the U.S. Federal Reserve’s interest rate path.

The rand has been highly volatile since last week’s Jackson Hole Symposium of global central bankers, where Fed Chair Jerome Powell said the U.S. central bank may need to raise interest rates further.

“Markets have been worried since Jackson Hole,” Rand Merchant Bank said in a morning briefing.

Around 1200 GMT on Wednesday, South Africa’s National Treasury will release budget July data, shining a light on the health of the country’s public finances.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded up around 0.3% from its Tuesday close. South Africa’s benchmark 2030 government bond was down marginally, the yield up 1.5 basis points at 10.180%.