The rand traded as low as R17.48 against the dollar on Friday.
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The rand weakened on Friday as investors pared exposure to riskier assets on geopolitical tensions, speculation about US rate cuts, and the prolonged US government shutdown.
The rand weakened to R17.48 against the dollar, about 1.2% down from its previous close.
“The [rand] is staying in a tight range. While gold has had its best week in five years, the ‘risk-off’ sentiment is not allowing the [rand] to push ahead,” said Adam Phillips, treasury specialist at Umkhulu Treasury, in a research note.
The flight to safety saw gold hit a record high of $4 378.69 per ounce. Bullion is set for a weekly gain of 8.5%, its biggest since September 2008 during the global financial crisis. South Africa is a major gold producer.
Like other risk-sensitive currencies, the rand often takes cues from global drivers like US monetary policy in addition to domestic data.
Domestically focused investors will look to the release of consumer price inflation data next week for clues on the health of Africa’s largest industrialised economy.
On the JSE, the Top-40 index was down 1.4% by 14:30.
South Africa’s benchmark 2035 government bond was steady in early deals, with the yield down 1 basis point to 9.01%.
With additional reporting by News24.
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