South Africa's rand under pressure as Fed rate hike looms

JOHANNESBURG (Reuters) - South Africa's rand recovered slightly against the dollar early on Friday, but remained under pressure as the increasing likelihood of a U.S. interest rate rise this month weighed on emerging market currencies. * By 0625 GMT, the rand was 0.11 percent firmer at 13.1350against the dollar, little changed from its overnight close of13.1500. * A series of hawkish comments by Fed policymakers this weekhas led to a sharp increase in market expectations for the Fedto raise interest rates at its March 14-15 policy meeting,giving a lift to the greenback. * "The rand against the U.S. dollar broke through theshort-term resistance levels of 13.15/17 yesterday due to astrong dollar, and this morning's trend suggests it willcontinue to weaken today," said RMB analyst Isaah Mhlanga. * Stocks set to open lower at 0700 GMT, with the JSEsecurities exchange's Top-40 futures index down 0.81 percent. * Bonds were weaker, with the yield on the benchmark paperdue in 2026 up 0.5 basis points at 8.760 percent. (Reporting by Nqobile Dludla)