Rand turns to global markets for direction

The rand was flat against the dollar on Thursday, with traders and analysts expecting it to turn to global markets for direction after touching five-week lows in the aftermath of weak domestic GDP data.

At 08:52 the currency traded at R12.0200/$, barely changed from Wednesday's close at R12.0230.

The dollar looked set to rally in the session as recent data suggested a recovery in the world's biggest economy was still on track, keeping a rise in US interest rates by the Federal Reserve in play.

"The dollar continues to benefit from growing expectations that the Fed is likely to hike policy rates in the latter half of the year," Barclays Africa said in a note.

"With ongoing uncertainty surrounding Greece's ability to meet its debt repayments, most emerging market currencies are on the back foot."

Local government bonds recouped some of the previous day's losses, with the yield for the benchmark instrument due in 2026 dipping 3 basis points to 8.11%.