The South African rand was on the back foot in early trade on Thursday, after the U.S. Federal Reserve projected higher interest rates for a longer period.
At 0600 GMT, the rand traded at 17.2400 against the dollar, about 0.5% weaker than its Wednesday close.
Fed Chair Jerome Powell said on Wednesday that the central bank will deliver more rate hikes next year even as the economy slips towards a possible recession.
The risk-sensitive rand is highly susceptible to shifts in the outlook for U.S. monetary policy and other major global market drivers.
The dollar was up about 0.2% against a basket of currencies on Thursday .
Later on Thursday, Statistics South Africa will release November producer inflation (ZAPPIY=ECI) and third-quarter formal-sector employment figures.
The South African government’s benchmark 2030 bond was slightly stronger in early deals, with the yield falling 1.5 basis points to 10.245%.
