Rand pulls back on domestic growth worries

Johannesburg - The rand retreated from 10-week highs against the dollar on Wednesday, as nagging worries about domestic growth offset the boost from a generally risk-on global environment.

Stocks were set to open a touch firmer, with the Top 40 futures index of the JSE edging up 0.3%.

The rand traded at R14.4225/$ by 09:59, down 0.57% from Tuesday's close at R14.3410/$.

The currency had climbed to R14.2755/$ on Tuesday, its strongest since May 3, partly buoyed by a surprise jump in local manufacturing output.

The outlook for the economy, however, still remains downbeat, raising the risk of credit rating cuts before the end of the year. The International Monetary Fund has cut its growth forecast for 2016 to 0.1% from the 0.6% predicted in May.

Government bonds also dipped on Wednesday, and the yield for debt due in 2026 added 1.5 basis points to 8.675%.