Rand bounces back thanks to soft US jobs data

The dollar's retreat followed data showing a jump in initial claims for US state unemployment benefits. Coming on top of last week's weak payrolls report, it further encouraged investors that the Federal Reserve will start lowering interest rates in the Northern Hemisphere's autumn and spurred buying of stocks and bonds, pulling down yields.

Alvin Tan, head of Asia FX strategy at RBC Capital Markets, said the dollar was unlikely to fall too far, however, given that high US interest rates still make US bonds attractive.