South African rand heading for 1 pct gain vs dollar this week

Reuters
South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg,file. REUTERS/Siphiwe Sibeko

JOHANNESBURG (Reuters) - South Africa's rand was slightly weaker early on Friday but was on course for a 1 percent gain versus the dollar this week. At 0609 GMT, the rand traded at 11.9725 versus the dollar, down 0.1 percent from its close on Thursday. The dollar index was slightly higher. The rand is up around 0.9 percent against the U.S. currency since last Friday's close. Appetite for the rand has been boosted this week by strong economic data which suggests the economy is recovering. March inflation hit a seven-year low, and retail sales rose more than expected in February. The International Monetary Fund also raised its 2018 growth forecast for South Africa to 1.5 percent. Government bonds were flat in early deals, with the yield on the benchmark instrument due in 2026 at 8.015 percent. Earlier in the week the yield on that bond fell to a two-week low. "Positive South African inflation figures continue to support South African bond prices and the currency," NKC Research analysts said in a note. (Reporting by Alexander Winning; Editing by Edmund Blair)