[ad_1]
(Update prices, add stocks)
JOHANNESBURG, Sept. 3 (Reuters) – The South African rand received a boost on Friday after a closely watched US employment report fell well below expectations, meaning that the US central bank should wait to cut its massive stimulus measures.
The non-farm payroll in the United States increased by 235,000 jobs last month, well below the 728,000 jobs expected by economists polled by Reuters.
The Federal Reserve has made the labor market recovery a condition for curtailing its asset purchases in the pandemic era, making employment data a major event that sent a wave to markets around the world .
At 3:00 p.m. GMT, the rand was trading at 14.2750 against the dollar, almost 1.5% stronger than its previous close, while the US dollar fell to its lowest level since August 4.
Along with other risk-sensitive currencies, the rand moves steadily in line with changes in the outlook for US monetary policy.
It rose sharply against the greenback earlier this week, after a conciliatory speech by Fed Chairman Jerome Powell last Friday suggested the bank was in no rush to raise interest rates.
Locally, investors will study PMI data at 7:15 a.m. GMT for clues on the pace of South Africa’s economic recovery after COVID-19.
Next week, the statistics agency will release second quarter gross domestic product figures, which will provide a more complete picture.
Shares closed lower, with the Johannesburg Stock Exchange’s Top-40 index slipping 0.42% to 60,107 points and the larger All-Share index falling by the same amount to 66,372 points.
While gold and platinum companies all rose, thanks to the surge in the price of their metals following US employment data, companies that tend to suffer when the rand is stronger fell. .
The government benchmark 2030 bond fell, with the yield rising 5 basis points to 8.810%. (Reporting by Alexander Winning and Emma Rumney Editing by Mark Potter and Angus MacSwan)
Source link
