South African rand weakens ahead of US jobs data

JOHANNESBURG (Reuters) – South Africa’s rand slipped on Wednesday, as focus shifted towards U.S. jobs data for clues on the Federal Reserve’s future interest rate trajectory.

At 0757 GMT, the rand traded at 18.1325 against the dollar, around 0.3% weaker than its previous close.

The U.S. ADP employment report is due on Wednesday and Fed Chair Jerome Powell is also scheduled to speak later in the day in what is expected to be his last public remarks before the central bank’s December meeting.

Like most emerging market currencies, the rand takes direction from global drivers such as U.S. economic data releases in addition to local events.

Domestically, South African private sector activity increased for a fourth consecutive month in November as firms took on more workers and grew more confident about the economic outlook, a survey showed.

On the stock market, the Top-40 index was up about 0.5%.

South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 2 basis points to 8.92%.

(Reporting by Bhargav Acharya; Editing by Andrew Heavens)