The rand was on the front in late trade on Wednesday ahead of a four-day weekend as markets wait to see whether the Federal Reserve will make another 25 basis point cut and give some indication whether its recent rate-cutting policy is now on hold.

Traders said the rand was being supported by carry trade. The local currency shrugged off news that South Africa recorded a R5.030-billion trade deficit for March, which was much in line with expectations.

By 4.10pm the rand was bid at 7.5563 to the dollar from a previous close of 7.6037. It was bid at 11.7640 to the euro from a previous 11.8253 and at 14.9157 against sterling from 14.9527 before.

The euro was bid at US$1.5564 from $1.5567 overnight, while gold was quoted at $873.45 a troy ounce from $869.25 overnight.

"The rand is stronger on the back of the long weekend. The market is long rand," a local currency trader said.

Local conditions are thin this week as it is only a two-day trading week with South African markets closed for three public holidays – last Monday, tomorrow and Friday.

Bonds looking to consolidate

Bonds should look to consolidate next week, but conditions remain volatile after the raft of poor data this week.

By 4.18pm on Wednesday the short-term government R153 bond was at 10.340 percent from its previous close of 10.300 percent, while the medium-term R157 was at 9.460 percent, unchanged from its previous close. The longer-term R186 bond was bid at 9.350 percent from its previous close of 9.295 percent.

I-Net Bridge