South African rand steady after US jobs data

JOHANNESBURG (Reuters) – South Africa’s rand was steady on Friday after the release of U.S. jobs data, which increased bets of an interest rate cut by the Federal Reserve later this month.

At 1507 GMT, the rand traded at 18.0075 against the U.S. dollar, not far from its previous close.

U.S. nonfarm payrolls increased by 227,000 jobs last month after rising an upwardly-revised 36,000 in October, data showed. The central bank will on Dec. 18 announce its latest policy decision, with the futures markets now seeing a nearly 90% chance of a 25-basis-point rate cut.

Like other risk-sensitive currencies, the rand often takes direction from global factors such as U.S. economic data in addition to local drivers.

Domestically, South Africa’s net foreign reserves fell to $60.619 billion at the end of November from $61.197 billion in October, central bank data showed on Friday.

On the stock market, the Top-40 index closed 0.1% higher.

South Africa’s benchmark 2030 government bond was marginally stronger, with the yield down 1.5 basis points at 8.935%.

(Reporting by Tannur Anders and Bhargav Acharya; Editing by Eileen Soreng and Shailesh Kuber)