#forexupdate

JOHANNESBURG - On Friday, the South African rand managed to recover some of its losses due to improved market sentiment during the European session and following a speech by the U.S. Federal Reserve chair, which could have implications for future interest rate hikes in the United States.As of 1528 GMT, the rand was trading at 18.6550 against the dollar, showing a gain of about 0.9% compared to its previous close. This rebound came after the currency had surged as much as 1% earlier in the day.The rand has experienced a turbulent week, contributing to an overall decline of over 4% for the month.Meanwhile, the dollar saw a slight increase of around 0.1% against a basket of global currencies.During the Jackson Hole Symposium for global central bankers on Friday, Fed Chair Jerome Powell delivered a speech in which he indicated that additional U.S. rate hikes might be necessary to achieve the country's inflation objectives."Danny Greeff of ETM Analytics noted to Reuters prior to the speech that given the recent substantial rise in U.S. Treasury yields, there's a risk that the market could interpret Powell's comments as dovish, irrespective of his efforts to maintain a balanced or even slightly cautious stance."In the absence of domestic economic data cues, the rand, which tends to be sensitive to risk factors, often takes cues from global influences such as U.S. monetary policy.Greeff commented, "The movement of the rand will be subject to Jackson Hole-related news headlines throughout the weekend."Meanwhile, South Africa's benchmark 2030 government bond weakened, with the yield increasing by 1 basis point to reach 10.210%.On the Johannesburg Stock Exchange, the blue-chip Top 40 index (.JTOPI) concluded the week in negative territory, closing approximately 0.7% lower.