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South African rand steady after drop on U.S. rate expectations

The South African rand hovered around its previous close against the dollar in early Friday trade after falling almost 2% the previous day amid risk-averse markets.

The rand traded at 19.0925 against the dollar at 0609 GMT, not far from its previous close of 19.1100.

The dollar index was at 103.010, down 0.08% against a basket of global currencies.

The rand slumped on Thursday as the Federal Reserve's June meeting minutes revealed a hawkish policy stance, prompting investors to move away from riskier assets.

Earlier on Friday South African Reserve Bank data showed net foreign reserves fell to $54.936 billion at the end of June, from $55.045 billion in May (ZAFXRS=ECI), (ZAFXRG=ECI).

The central bank will also hold its weekly treasury bill and inflation-linked bond auctions around 0930 GMT.

South Africa's benchmark 2030 government bond was slightly stronger in early deals, with the yield down 2.5 basis points at 10.670%.