June 1, 2018 / 7:43 AM / a year ago

South Africa's rand recovers from tariff driven sell-off

JOHANNESBURG, June 1 (Reuters) - South Africa's rand was firmer on Friday, after a bout of aggressive selling in the previous session triggered by Washington's decision to impose trade tariffs on metal imports.

* At 0700 GMT the rand was 0.41 percent firmer at 12.6450 per dollar from an overnight low of 12.7350.

* Washington's decision to impose trade tariffs on metal imports from key allies provoked a swift response, with Canada, Mexico and the EU imposing retaliatory tariffs.

* The rand was on the front foot in early trade as investors took profits on the dollar following a short squeeze on emerging markets.

* With U.S. employment data due trading is expected to be subdued, with the rand seen in a range between 12.40 and 12.75.

* Stocks opened firmer, with the Johannesburg Top-40 index up 1 percent to 50,283 points.

* Bonds were weaker, with the yield on the benchmark 2026 paper up 3.5 basis points to 8.59 percent. (Reporting by Mfuneko Toyana Editing by Alexander Smith)

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