Rand Rises As Traders Await US Jobs Data

The South African rand inched higher against a weaker dollar in early trade on Thursday as traders braced for the crucial U.S. nonfarm payrolls report, which will gauge the Federal Reserve’s next interest rate move.

The rand gained roughly 0.2 per cent to trade at 16.3750 against the greenback by 0656 GMT.

In the absence of major domestic economic releases, global factors and shifting expectations around U.S. monetary policy continue to drive the risk-sensitive currency.

Meanwhile, the U.S. dollar dropped 0.2 per cent against a basket of currencies, and oil prices fell about 1 per cent.

The energy decline followed an announcement from Qatar stating that Iran and the U.S. made progress in indirect talks to safeguard the strategic Strait of Hormuz.

Economists polled by Reuters expect the upcoming U.S. data to show that employers added 110,000 jobs in June while predicting the unemployment rate will hold steady at 4.3 per cent.

Rand (News Central TV) — South African rand coins are seen in this picture illustration created on October 28, 2020. Credit: REUTERS/Mike Hutchings

In contrast to the strengthening currency, South Africa’s benchmark 2035 government bond weakened in early deals, pushing the yield up 2.5 basis points to 8.295 per cent.

Author

Abisoye Adeyiga

Abisoye Adedoyin Adeyiga holds a PhD in Languages and Media Studies and a Master’s in Education (English Language). Trained in digital marketing and investigative journalism, she is passionate about new media’s transformative power. She enjoys reading, traveling, and meaningful conversations.