The rand was even in early trade on Friday, opening at R14.86/$ and trading 0.12% stronger at R14.84/$ at 09:00. 

With no major SA economic data set for release on Friday, analysts expect the currency to again react to international events. 

NKC African Economics, in a morning note to clients, said these include uncertainty regarding the outlook for global trade and an apparent attack on oil tankers in the Gulf of Oman. 

According to Andre Botha of TreasuryONE, markets are focusing on the upcoming US Federal Reserve Bank's FOMC meeting to see whether the first of two anticipated rate cuts will happen.

Stocks mixed in Asia as yields grind down; gold up

Adam Haigh, Bloomberg

Stocks in Asia were mixed Friday and a global bond rally extended amid ongoing concern that trade frictions may jeopardize global economic growth and bets that interest rates will fall.

Oil remained strong following an escalation in Middle East tensions. Hong Kong and Korean shares fell, while Japan’s Topix index edged up and S&P 500 futures were little changed.

US stocks climbed Thursday to a five-week high. A surprise increase in US jobless claims supported the idea the Federal Reserve may cut rates, with the yield on 10-year Treasuries falling. They were at 2.07% Friday.

Australian yields plumbed fresh all-time lows. The dollar was flat, remaining in a tight range.

With heightened US-China trade tensions threatening to weaken already fragile global economic growth and geo-political concerns ratcheting up in the Middle East, equity investors are banking on more support from central banks.

The odds of the Fed shocking markets next week and lowering the fed funds rate target are higher than many expect, according to BMO strategists. Chinese data for May due Friday will show how the economy is coping with higher US tariffs.

“What’s important to remember right now is that there aren’t a whole lot of upside catalysts,” Randy Frederick, vice president for trading and derivatives at Charles Schwab & Co., told Bloomberg TV. “Markets are waiting now for what the Fed is going to say at the meeting and that’s coming next week.”

Elsewhere, oil producers were buoyed by Thursday’s surge in crude prices. Two tankers were damaged in suspected attacks near the Persian Gulf. The US blamed Iran.

Meantime, New Zealand’s dollar declined after weak manufacturing data fueled concerns for economic growth. The Aussie weakened with bond yields amid calls from strategists for looser monetary policy.