PRETORIA – The South African rand steadied against the dollar early on Thursday, after suffering losses the previous day after the central bank cut its main lending rate and said its assessment showed the currency was somewhat overvalued.
At 0630 GMT, the rand traded at 11.7600 per dollar, not far off its overnight close of 11.7700.
The South African Reserve Bank on Wednesday cut the repo rate by 25 basis points to 6.5 percent, a move that dented the appeal of local assets versus developed-market peers.
On Thursday, traders awaited a raft of economic data due, including February trade balance figures and producer price inflation numbers, as well as monthly budget balance data.
In fixed income, the yield for the benchmark government bond was up 3 basis points at 7.94 percent, reflecting weaker bond prices.