File picture: Philimon Bulawayo
Johannesburg - The rand strengthened on Wednesday as local data supported the currency against a weakening dollar.

However, at 5pm, the rand was bid at R12.5898 to the dollar, less than a cent softer than at the same time on Tuesday, just off the 20-month high reached on Tuesday and in line with global markets that benefited from weakness in the greenback on doubts over US President Donald Trump’s ability to deliver on promised spending and tax cuts.

The rand was further supported by the current account deficit narrowing to 1.7 percent of gross domestic product - its lowest in nearly six years - towards the end of last year and a slowdown in annual inflation.

In fixed income, government bonds also strengthened, with the yield on the 2026 benchmark down.

REUTERS