Story
South African Rand Rises as US Dollar Weakens on Jobs Data
Summary
The South African rand strengthened on Thursday, gaining against a weaker U.S. dollar. The dollar's decline followed the release of U.S. employment figures that fell short of economists' expectations.
The South African rand gained ground against the U.S. dollar on Thursday, trading 1.0% stronger than its previous close. By 1244 GMT, the currency was valued at 16.24 to the dollar.
The rand's appreciation was primarily driven by a weakening U.S. dollar. The dollar index, which measures the greenback against a basket of major currencies, fell by approximately 0.6% following the release of weaker-than-expected American employment data.
According to the report, U.S. nonfarm payrolls increased by only 57,000 in June, significantly missing economists' forecasts for a 110,000 gain. The report did note, however, that the national unemployment rate decreased slightly to 4.2% from 4.3%.
AdIn the absence of major local economic data, the rand often follows global market drivers. The positive sentiment was also reflected in the Johannesburg Stock Exchange, where the Top-40 index rose by about 1.5%.
Other global factors also influenced markets. Oil prices dropped nearly 2% after Qatar reported progress in discussions between the U.S. and Iran regarding the Strait of Hormuz.