Rand stages recovery after sell-off as focus turns to US jobs report
The rand was relatively calm in mid-morning trade‚ showing signs of recovery against the dollar after weakening sharply earlier in the week.
The rising US treasury yields and a stronger dollar stole the limelight this week‚ setting the scene for the release of the closely watched US non-farm payrolls report.
The US economy has been in a reasonably good shape‚ allowing the US Federal Reserve to increase interest rates‚ which supports the value of the dollar at the expense of the rand and other currencies.
Markets will be looking for signs of a pick-up in inflation via wages growth in the jobs report. The world’s largest economy probably created 185‚000 jobs in September‚ economists predict‚ from 201‚000 in August.
Local bonds were weaker ahead of the jobs report‚ with the yield on the benchmark R186 bond sitting at 9.24%‚ from 9.19%.
At 10.55am‚ the rand was at R14.7895 to the dollar‚ from R14.8676‚ at R17.0013 to the euro‚ from R17.1191‚ and at R19.2797 to the pound‚ from R19.3584. The euro was at $1.1495‚ from $1.1514.