The South African rand stabilised on Wednesday after a big drop the day before when the U.S. dollar posted its best daily performance since March 2023.

At 0716 GMT, the rand traded at 18.5700 against the dollar, the same level as its previous close.

On Tuesday, the first trading day of 2024, the rand ended about 1.5% weaker against the dollar, as elevated U.S. Treasury yields and a cautious turn in risk sentiment boosted the dollar.

The dollar was broadly steady on Wednesday.

No major South African economic data releases are due on Wednesday. On Thursday a whole-economy purchasing managers’ index survey will be published.

South African rand kicks off 2024 on a weaker note

The Johannesburg Stock Exchange’s Top-40 index was down around 0.5% in early trade. The benchmark 2030 government bond was little changed, the yield up 0.5 basis points to 9.86%.