South African rand firms as dollar eases after Trump demands lower Fed rates

JOHANNESBURG, Jan 24 (Reuters) - South Africa's rand gained early on Friday, against a softer dollar, after U.S. President Donald Trump demanded lower interest rates by the Federal Reserve.

At 0639 GMT, the rand traded at 18.38 against the dollar ZAR=D3, about 0.8% stronger than its previous close. The greenback =USD last traded about 0.5% weaker against a basket of currencies.

Data out of the world's biggest economy on Thursday showed a rise in weekly jobless claims, while Trump, speaking virtually at the World Economic Forum meeting at Davos, said he would demand lower interest rates.

These have led to a revision of U.S. rate cut expectations and driven U.S. Treasury yields lower on Friday, ETM Analytics said in a research note.

"In turn, the dollar has come under renewed pressure, with the rand taking advantage as it trades to its strongest levels since before Christmas. Whether the rand bulls can sustain this momentum into the weekend remains to be seen."

South Africa's benchmark 2030 government bond ZAR2030= was stronger in early deals, with the yield down 5.5 basis points to 9.0%.