Rand firms as Swiss surprise stokes volatility

Johannesburg - The rand firmed against the dollar on Friday as global financial markets reeled in wake of the surprise decision by the Swiss National Bank (SNB) to abandon its currency cap.

The rand clawed back losses after falling as much as 1% following Eskom's admission that rolling power outages would continue for the next three years.

By 08:20 the rand was 0.07% firmer at R11.5490 per dollar, temporarily shaking-off persistent worries about the economy's ability to grow in the face of entrenched fundamental weaknesses.

A Reuters poll of 33 economists predicted growth of 2.3% this year for Africa's second-largest economy, down from 2.5% predicted one month ago.

But volatility in European currency markets stoked by the SNB's move pushed the rand firmer, along with other emerging market currencies, as investors sought relief from uncertain conditions overseas.

Government bonds were flat in early trade, with benchmark issue due in 2026 unmoved at 7.405%.