JOHANNESBURG, Dec 5 (Reuters) - The South African rand strengthened in early trade on Friday, continuing its break below the 17.0000 handle as the smaller-than-expected current account deficit eased pressure on the rand and the government issued dollar-denominated eurobonds for the first time since 2024.
At 0728 GMT the rand traded at 16.9350 against the dollar, about 0.4% stronger than its previous close.
"The ZAR pushed through the psychological 17.00 yesterday, it was helped by the Q3 current account deficit being lower than the previous quarter. Any improvement helps our terms of trade," said Adam Phillips, treasury specialist at Umkhulu Treasury.
South Africa's current account deficit narrowed to 0.7% of gross domestic product (GDP) in the third quarter from 1.0% of GDP in the second quarter.
Deutsche Bank announced in a notice on the London Stock Exchange that the initial price guidance is in the 6.625% to 7.750% range for both the 12-year and 30-year bonds.
Johann Els, chief economist at PSG Financial Services, said this was one of the main contributors to the stronger rand.
Investors turned their attention to South Africa's net foreign reserves, which rose to $70.024 billion at the end of November from $69.364 billion in October, central bank data showed on Friday.
South Africa's benchmark 2035 government bond was firmer in early deals, as the yield fell 1.5 basis points to 8.31%.
(Reporting by Anathi Madubela, Editing by Alexandra Hudson)
