The rand rallied on Friday morning, putting it on track for its best weekly gain against the dollar since December. The rand benefited from a favourable global environment in particular, while a slightly upbeat assessment of the South African economy from ratings agency Moody’s boosted sentiment. The dollar continued its retreat on global markets, benefiting the rand and other emerging-market currencies.

The retreat in the dollar coincided with a decision on Thursday by the Turkish central bank to aggressively raise interest rates, which helped take the pressure off the lira and its peers. "The question now becomes whether [emerging-market currencies] have a definite change of momentum or if this is just a knee-jerk reaction to the events in Turkey," said Andre Botha, senior currency dealer at TreasuryOne. Turkey was in the eye of the storm recently when its currency plummeted due to political and economic concerns — a development that hurt sentiment towards emerging markets. ...

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