South African rand losing gains in early trade

South Africa’s rand retreated early on Friday, losing gains made after U.S. data offered hope inflation was now on a sustained downward trend, potentially allowing the Federal Reserve to slow its policy tightening pace.

At 0643 GMT, the rand traded at 16.7600 against the dollar, 0.18% weaker than its previous close.

South Africa is struggling with recurring power cuts of about six to eight hours a day for most households.

The country’s energy regulator on Thursday approved an 18.65% power price rise for beleaguered state utility Eskom for the financial year starting on April 1, less than the company requested.

The government’s benchmark 2030 bond was stronger in early deals, with the yield down 7.5 basis points to 9.750%.