SA RAND GAINS AGAINST THE DOLLAR, AWAITS US JOBS DATA

Tue 07 May 2024:

On Tuesday, the South African rand exhibited strength, although anticipations of increased volatility loomed as the market awaited U.S. employment data later in the week.

At 1507 GMT, the rand was trading at 18.4350 against the dollar <ZAR=D3>, marking a 0.2% increase from its previous close.

Meanwhile, the dollar index saw a slight decline of approximately 0.07% against a basket of currencies.

“We will probably only see more volatility later this week when the U.S. releases jobless claims data on Thursday,” said Casparus Treurnicht, portfolio manager at Gryphon Asset Management.

Investors are closely eyeing the forthcoming U.S. data, as it could provide insights into the future interest rate trajectory of the world’s largest economy. Given the absence of significant local data points, the rand tends to respond to global factors such as U.S. economic indicators.

In the equities market, both the Top-40 (.JTOPI) and the broader all-share (.JALSH) indices concluded the session with gains of around 0.25%.

Additionally, South Africa’s benchmark 2030 government bond demonstrated strength, with the yield decreasing by 11 basis points to 10.450%.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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