South Africa’s rand weakened in early trade on Friday, ahead of a highly anticipated US jobs report due later that could give clues on the Federal Reserve’s interest rate hike trajectory.
At 0634 GMT, the rand traded at 18.0200 against the dollar, 0.15% weaker than its previous close.
Fed officials have showed no intention of backing down from an aggressive rate hike campaign, with some policymakers on Thursday emphasising that the fight against inflation was ongoing and they were not prepared to change course.
Like most emerging market currencies, the rand is highly susceptible to global drivers such as the US monetary policy.
The dollar index, which measures the greenback against six major rivals, was up 0.15% to 112.43.
South African rand steady ahead of current account data
Locally, data from the South African Reserve Bank on Friday showed that the country’s net reserves fell to $52.240 billion in September from $53.141 billion in August.
The government’s benchmark 2030 bond was lower in early deals, with the yield up 3 basis points to 10.675%.
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