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South Africa's rand was little changed in early deals on Friday, as the U.S. dollar traded lower due to the prospect of the Federal Reserve slowing monetary policy tightening.
By 0615 GMT, the rand was still trading around its its overnight closing level of 17.0100 per dollar.
Against a basket of currencies, the U.S. dollar index was last down 0.076% to 105.79.
ETM Analytics said in a research note that thinner-than-usual liquidity conditions due to the long weekend in the U.S. may keep the dollar's value against the rand range bound.
"However, when pulling back the lens, it is evident that the pair has garnered strong downside momentum over the last month," it added.
The rand could recover to levels below the 16.0000 mark and beyond in the months ahead as the dollar remains extremely over-valued, ETM said.
The government's benchmark 2030 bond was slightly stronger in early deals, with the yield down 2.5 basis points to 10.130%. (Reporting by Anait Miridzhanian; Editing by Kim Coghill)