Rand recovers vs dollar, Eskom in focus

Johannesburg - The rand recovered against the dollar early on Thursday as the greenback fell on weak US economic data but widespread power cuts could put pressure on the local unit.

At 08:46 the rand was trading 0.48% firmer at R12.0075/$ compared with its closing level on Wednesday.

The currency slipped over 1% on Wednesday towards its softest level in two weeks.

"Markets are still trying to get a handle on all the events of yesterday, which suggests scope for continued choppy trade today," RMB analyst John Cairns said in a market note.

Power utility Eskom restarted rolling blackouts on Thursday, the fifth straight day of power cuts imposed to prevent the grid from collapsing.

Globally, Wednesday's weak Chinese data further boosted expectations of monetary stimulus from Beijing while soft US data dampened prospects of an early rate hike by the Federal Reserve.

The European Central Bank also affirmed its loose policy stance on Wednesday.

In fixed income, the yield for the 2026 benchmark was down 3 basis points to 7.765%.

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