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Rand hits three-month high on US jobs data

Rand hits three-month high on US jobs data

Photo by Bloomberg

7th April 2014

By: Reuters

  

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The rand hit a three-month high against the dollar on Friday, gaining in a knee-jerk reaction to a US jobs report that slightly missed market expectations, taking bond yields lower.

South Africa's currency hit its strongest in the session after a US labour report showed the world's biggest economy added 8 000 less non-farm jobs than forecast, disappointing some market players who had expected a strong rebound from poor weather conditions.

The rand was up 1% at R10.5440 to the dollar by 1552 GMT, coming back from a session best of R10.5020 to the dollar, levels last seen on January 2.

It was the second best performing unit, after the Brazilian real, in a basket of emerging market currencies trading against the dollar and tracked by Reuters, after days of underperforming its peers.

"The rand is just testing R10.50. All emerging markets seem to be doing quite well on the back of this non-farm payroll announcement," Rand Merchant Bank currency trader Jim Bryson said, adding that a break through R10.48 resistance would open up further gains for the rand.

The local unit has previously found the R10.47 to R10.50 area a tough level to get beyond.

Government bonds tracked the currency higher, with the 2026 benchmark yield down 11.5 basis points to 8.405%, while the shorter date 2015 note gave up 5.5 basis points to 6.735%.

Edited by Reuters

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