JOHANNESBURG, Jan 24 (Reuters) – South Africa’s rand firmed on Friday against a weaker dollar after U.S. President Donald Trump demanded lower interest rates from the Federal Reserve, driving down Treasury yields.

At 0848 GMT, the rand traded at 18.35 against the U.S. dollar, about 1% stronger than its previous close. The greenback last traded about 0.6% weaker against a basket of currencies.

Data out of the world’s biggest economy on Thursday showed a rise in weekly jobless claims, while Trump, speaking virtually at the World Economic Forum meeting at Davos, said he would demand lower interest rates.

The jobless claims and Trump’s remarks led to a revision of U.S. rate cut expectations and drove U.S. Treasury yields lower on Friday, ETM Analytics said in a research note.

“In turn, the dollar has come under renewed pressure, with the rand taking advantage as it trades to its strongest levels since before Christmas. Whether the rand bulls can sustain this momentum into the weekend remains to be seen.”

But analysts said that although dollar weakness supports the local currency, tariff risks posed by Trump and a fragile global sentiment could limit further gains.

Next week, domestically focused investors will look to the South African Reserve Bank (SARB) when it announces its first interest rate decision for 2025 on Jan. 30.

“With the SARB, Fed and (European Central Bank) meetings ahead, central bank guidance will heavily influence (foreign exchange) and bond markets,” said Andre Cilliers, currency strategist at TreasuryONE.

South Africa’s benchmark 2030 government bond was stronger, with the yield down 8 basis points to 8.975%.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded up more than 1%.

(Reporting by Tannur Anders; additional reporting by Sfundo Parakozov; editing by Rashmi Aich and Mark Heinrich)