South African rand gains after foreign reserves data
JOHANNESBURG, June 6 (Reuters) - The South African rand edged up in early trade on Friday, after central bank data showed that foreign reserves increased last month.
At 0742 GMT the rand traded at 17.7650 against the dollar , about 0.2% firmer than Thursday's closing level and hovering around its highest level since December 2024.
South Africa's net foreign reserves rose to $64.804 billion at the end of May from $64.318 billion in April, the country's central bank reported on Friday.
Commerzbank analyst Volkmar Baur said in a research note the local currency has also benefited from renewed U.S. dollar weakness in recent weeks.
The dollar was up 0.2% against a basket of currencies but has been under pressure due to signs of fragility in the U.S. economy and as trade negotiations between Washington and its trading partners made little progress despite a looming deadline.
The note added that news of an agreement in South Africa's long-delayed budget also provided support for the rand.
On Wednesday, a key parliamentary committee backed the national budget's fiscal framework and revenue proposals, clearing the path for a vote in the lower house of parliament on June 11.
South Africa's benchmark 2035 government bond was slightly weaker in early deals, as the yield rose 2 basis points to 10.07%.
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