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JOHANNESBURG. — THE rand continued to post strong gains against major currencies in midday trade on Friday, buoyed by disappointing US data which took its toll on the dollar, driving up commodity prices.

US economic growth for the first quarter disappointed, dealing a blow to expectations of a near-term hike in interest rates there.

US gross domestic product grew at an annual pace of 0.5 percent in the three months to March, against market expectations of 0,7 percent.

The poor US data was a double whammy for the green-back, which was still reeling from the Bank of Japan bucking expectations by not expanding monetary stimulus on Thursday, which boosted the yen.

This, a day after the US Federal Reserve signalled it was in no hurry to raise interest rates.

At 11.45am‚ the rand was trading at R14,2112 to the dollar from R14,2883 at Thursday’s close. It was at R16,1770 against the euro from R16,2197 previously‚ and at R20,7201 against the pound from R20.8714 previously.

The euro was at $1,1384 from $1,1353.

“The rand rally has resumed, but is not at full speed yet. The rand has dropped from Wednesday’s high of R14,60/$ to trade down to R14,26 this morning, within sight of the R14,16 key support line,” said John Cairns of RMB Global Markets.

The dominant issue in the rand outlook remained the dollar, he said.

“The dovish Fed statement and yesterday’s weak US GDP print have seen pressure on the greenback resume, but the euro/dollar is now facing stern resistance at 1,14. Today’s event risk on this front comes from US personal income and spending data this afternoon. The next major event risk is the US nonfarm payrolls data in a week’s time,” Cairns said.

Chief currency dealer at TreasuryOne Wichard Cilliers said the week was ending with a bang for the rand.

“Today looks set to favour the rand again with much of the continued firming in commodity prices giving our currency some renewed support,” Mr Cilliers said. — Reuters.