South African rand treads water before US jobs data as markets assess Fed rate path

According to Business Recorder, the South African rand held steady in early trade on Friday, quoted at 15.9975 against the dollar and barely moved from its previous close. Currency traders were focused on the United States nonfarm payrolls report, due at 1230 GMT, for signals on the Federal Reserve's next interest rate decision. The jobless rate was forecast to remain at 4.1%.

The rand, like other emerging market currencies, usually takes its cues from global forces, including American economic releases and geopolitical events. ETM Analytics said in a note that a softer-than-expected jobs gain would back the Fed's case for leaving rates alone, trim bets on a September hike, and likely help the rand gain against the dollar. A stronger print, particularly with wage pressure, could revive the case for rate increases before year-end and send the pair toward 16.20.

Separately, the benchmark 2035 government bond edged higher in early dealings. Its yield slipped to 8.565%, a decline of 1.5 basis points.