Friday, 02 October 2015 13:11
JOHANNESBURG: South Africa’s rand edged up against the dollar in early trade on Friday, with traders and analysts expecting the currency to get its steer mainly from U.S. employment data due out later in the session.
Government bonds opened slightly weaker but the stock market got off to a firm start, with the benchmark JSE Top-40 index adding 0.8 percent to 45,610 while the broader All-share rose by the same margin to 50,911.
By 0705 GMT the rand was trading at 13.8700 per dollar, up 0.37 percent from Thursday’s New York close.
Traders however said the rand remained vulnerable to bearish sentiment after failing to hold on to earlier gains in the previous section.
Emerging markets in general could also come under pressure if jobs numbers out of the United States surpassed expectations, building the case for an interest rates hike this year in the world’s biggest economy.
“The rally in the rand over the last two days may be at an end,” Standard Bank trader Oliver Alwar said. “The technical picture suggests that more rand weakness is on the cards.”
In fixed income, the yield on debt maturing in 2026 ticked up 1 basis point to 8.425 percent.
