The South African rand strengthened on Friday as gold prices edged higher and remained on course for a third weekly gain, while a weaker US dollar and the US Treasury's bond buyback initiative boosted sentiment toward risk-sensitive currencies and precious metals.
At 0734 GMT the rand traded at 16.0550 against the dollar, about 0.4% up from its previous close.
US Treasury Secretary Scott Bessent said he may further increase the government's repurchases of Treasuries. That came after the Treasury said it would double the size of buybacks on longer-dated securities over the next quarter.
The dollar headed for a weekly loss, making greenback-priced bullion more affordable for buyers overseas.
Gold, South Africa's key export, edged higher on Friday and was on track for a third consecutive weekly gain, supported by a weaker dollar and the US Treasury's bond-buyback move.
