South African rand weakens as dollar edges higher

The dollar index, which measures the currency against six rivals, was last up 0.1% at 101.98 but still hovered around a two-month low. Photographer: Waldo Swiegers/Bloomberg

The dollar index, which measures the currency against six rivals, was last up 0.1% at 101.98 but still hovered around a two-month low. Photographer: Waldo Swiegers/Bloomberg

Published Apr 6, 2023

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South Africa's rand weakened against the dollar in early trade on Thursday, as investors awaited U.S. jobs data and its implications for the Federal Reserve's monetary policy.

At 08:45, the rand traded at 18.0750 against the dollar, 0.1% weaker than its previous close.

The dollar index, which measures the currency against six rivals, was last up 0.1% at 101.98 but still hovered around a two-month low.

With no major local economic data due until Tuesday, the rand is set to take its cues from global drivers.

Investors will be closely looking at Friday's US non-farm payrolls report for March, when many markets globally are closed.

While a slew of sluggish economic data this week has caused traders to scale back bets on how much longer U.S. rates would need to stay in restrictive territory, it has simultaneously reignited recession fears.

South Africa's benchmark 2030 government bond was weaker in early deals, the yield up 3 basis points to 9.810%.

Reuters