South African rand weakens after strong U.S. jobs data; stocks slide

10/07/2022 | 11:40am

(Reuters) -South Africa's rand weakened on Friday, as the dollar strengthened after a stronger-than-expected U.S. jobs report suggested the Federal Reserve will likely stick to its aggressive tightening policy for now.

At 1523 GMT, the rand traded at 18.1000 against the dollar, 0.6% weaker than its previous close.

Like most emerging market currencies, the rand is highly susceptible to global drivers such as U.S. monetary policy.

The dollar index, which measures the greenback against six major rivals, was up 0.089% to 112.35.

U.S. inflation data, due next week, will be watched closely as well and could prove influential in setting investors' expectations for the Fed, according to strategists.

On the Johannesburg Stock Exchange (JSE), the Top-40 and the broader all-share indexes ended almost 0.25% lower.

The government's benchmark 2030 bond was little changed in afternoon deals, with the yield down 1 basis point to 10.635%.

(Reporting by Bhargav Acharya in Bengaluru and Anait Miridzhanian in Johannesburg; Editing by Christian Schmollinger)

Reuters 2022
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