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JOHANNESBURG. — The rand gained early yesterday in low-volume trade ahead of a holiday-shortened week, as political instability in the United States curbed the dollar’s recent surge. At 0630 GMT, the rand was 0,21 percent firmer at R14,6000 per dollar, compared to a close of R14,6300 on Friday in New York.

In early trade, the dollar index was down 0,18 percent.

The rand, along with fellow emerging currencies, was hit by a wave of selling going into the weekend with investors squaring positions and looking to offload risk holdings.

But by yesterday risk demand was revived by developments in Washington, with investors fretting over a government shutdown that could continue into January and a report that President Donald Trump has discussed the possibility of firing the head of the central bank.

“A potential US government shut down, President Trump threatening to fire the Chairman of the Federal Reserve and US politics in general are adding some pressure to the dollar, assisting the rand in a slight rebound following a rather messy Friday,” said Bianca Botes of Peregrine Treasury Solutions.

Bonds were weaker, with the yield on the benchmark 2026 paper up 4 basis points at 9,04 percent. — Eyewitness News.