South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration/File Photo

JOHANNESBURG, Dec 20 (Reuters) – South Africa’s rand recovered some losses on Friday after a slight improvement in risk sentiment.

At 1406 GMT, the rand traded at 18.355 against the dollar ZAR=D3, about 0.3% stronger than its previous close.

Trade in the rand, like most emerging market currencies, has been volatile this week after the U.S. Federal Reserve on Wednesday struck a hawkish tone in its interest rate outlook for the year ahead.

Andre Cilliers, currency strategist at TreasuryONE, said liquidity constraints during the holiday season could amplify swings in the local currency.

“Near-term volatility (is) likely to persist,” Cilliers said.

There are no major local economic data releases scheduled for next week.

On the stock market, the Top-40 .JTOPI index was little changed.

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South Africa’s benchmark 2030 government bond ZAR2030= was weaker, with the yield up 2 basis points to 9.135%.

(Reporting by Bhargav Acharya; Editing by Angus MacSwan and Shailesh Kuber)