JOHANNESBURG (Reuters) – The South African rand rose on Friday after Federal Reserve Chairman Jerome Powell hinted at an interest rate cut next month.

At 15:20 GMT, the rand was trading at 17.71 against the dollar, 1.82% higher than its previous close.

“The time to adjust policy is now. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the changing outlook and the balance of risks,” Powell said at the Kansas City Fed’s annual economic conference in Jackson Hole, Wyoming.

Like other risk-sensitive currencies, the rand’s value is also influenced by global factors such as US monetary policy, as well as major local factors.

Following Powell’s statement, the rate fell 0.75% against a basket of currencies.

Domestic investors will next week turn their attention to July data on producer inflation, money supply, trade and the budget balance for clues on the health of the South African economy.

On the Johannesburg Stock Exchange, the Top-40 blue-chip index closed up 0.73%.

South Africa’s benchmark government bond due 2030 was stronger, with its yield falling 13.5 basis points to 9.075%.