Picture: ISTOCK
Picture: ISTOCK

The rand was edgy on Thursday morning, but kept within recent ranges, as market participants continued to watch global developments.

US government bond yields rose to new multiyear highs in early trade, but this time the effect has not necessarily translated into a stronger dollar, which is the world’s reserve currency.

"It’s uncertain times for the rand, as it continues to search for directional bias," ETM Analytics market analyst Halen Bothma said.

The resurgent dollar has been a thorn in the rand’s side, though political and economic concerns in Turkey and Argentina added a negative undertone.

Over the past few sessions, the Turkish lira has hit a series of record low against the dollar, despite recent increases in interest rates in the country.

The lira has since stabilised, after Turkish central bank verbally intervened on Wednesday, saying it would meet President Recep Tayyip Erdogan, who is reportedly looking to interfere in setting monetary policy.

The rand is a key variable in the outlook for inflation, which the South African Reserve Bank closely monitors when deciding on interest rates.

The bout of volatility in the rand exchange rand comes as economists expect inflation to rise in the coming months from a seven-year low of 3.8%, reached in March.

At 10.09am, the rand was at R12.4677 to the dollar from R12.4428, R14.7310 to the euro from R14.6918 and at R16.8570 to the pound from R16.7858.

The euro was at $1.1815, from $1.1807.