JOHANNESBURG: South Africa’s rand firmed early on Thursday, slightly rebounding from a weak start to the year, while the US dollar was little changed.

At 0700 GMT, the rand traded at 18.6725 against the dollar, around 0.2% stronger than its previous close.

The dollar was last down 0.01% at 102.39 against a basket of currencies.

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

“Turning more optimistic on the rand remains difficult,” ETM Analytics said in a note, adding that its lack of resilience can be put down to domestic factors such as a resumption of power cuts.

South African rand kicks off 2024 on a weaker note

The December S&P Global South Africa Purchasing Managers Index (PMI) is due to be published at 0715 GMT.

South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 8 basis points to 9.835%.