The South African rand strengthens after mixed employment data in the United States.


At 1505 GMT, the rand was trading at 15.9400 against the dollar, 0.27% higher than its previous close.

The rand plunged to its lowest level in several months on Thursday after the dollar rallied on demand for safe havens fueled by fears that the US Federal Reserve would continue its aggressive rate hikes, although the central bank assured that the chances of up 75 basis points were minimal.

On Wednesday, the Fed raised rates by an expected 50 basis points.

Higher interest rates in the United States can lead to capital outflows and currency depreciation in emerging markets.

On Friday, data showed U.S. job growth rose more than expected in April, but average hourly wages rose just 0.3% after rising 0.5% in March. .

South African government bonds also weakened, with the yield on the benchmark instrument reaching chance in 2030 rising 7.5 basis points to 10.060%.

Shares on the Johannesburg Stock Exchange fell sharply, as did global markets which fell on fears of more aggressive rate hikes to come in the coming months.

The benchmark all-share index fell 2.45% to 67,978 points, while the blue-chip index of the top 40 companies ended down 2.56% to 61,290 points.



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