JOHANNESBURG: South Africa’s rand firmed in early trading on Thursday against a weaker U.S. dollar, after Federal Reserve Chair Jerome Powell suggested rate cuts will likely come later this year.

At 0638 GMT, the rand traded at 18.8050 against the dollar, about 0.1% stronger than its previous close.

The dollar was trading down about 0.1% against a basket of global currencies.

A surge in gold prices has helped the rand gain some ground this week, analysts said, with little positive news at home to boost the currency.

Central bank data released on Thursday showed that South Africa’s net foreign reserves fell slightly to $56.652 billion at the end of February from $56.662 billion in January.

South African rand stable as gold prices surge

Gross reserves increased to $61.653 billion in February from $61.188 billion in January.

Current account data for the fourth quarter of 2023 will be released at 0900 GMT.

South Africa’s benchmark 2030 government bond was slightly stronger in early deals, with the yield down 0.5 basis points to 10.090%.