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Rand edges higher, remains vulnerable

Johannesburg - The rand inched higher against the dollar in early trade on Thursday, just off 14-year lows, as the local market remained in wait-and-see mode ahead of Friday's all-important US employment data.

Traders and analysts said the rand was battling to gain traction against the greenback as it mirrors the steady yet deteriorating local economy.

Dogged by a weak mining sector and soft economic indicators that underscore its subdued growth prospects.

The local unit was trading at R12.76 to the dollar by 08:39, up 0.15% from Wednesday's close of R12.7795.

The rand sold off dramatically in late Wednesday trade, dipping as low as R12.83 to the dollar after mixed data out of the United States fuelled expectations of a September Federal Reserve rate hike, putting commodity currencies under pressure.

"(The rand) opened slightly stronger this morning at R12.77, but is poised for further losses as the market readies itself for tomorrow's US non-farm payrolls data," said Nema Ramkhelawan-Bhana, a macroeconomic analyst at Rand Merchant Bank.

"The rand is as supple as a marionette puppet dancing about to the Fed’s tune."

Government bonds also recovered, with the 2026 benchmark yielding 1 basis point lower at 8.26%.

READ: Rand breaks through R20/£

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Rand - Dollar
19.07
-0.9%
Rand - Pound
24.07
-0.7%
Rand - Euro
20.56
-0.5%
Rand - Aus dollar
12.37
-0.2%
Rand - Yen
0.13
-0.8%
Platinum
899.20
+0.3%
Palladium
999.25
-0.3%
Gold
2,210.66
+0.7%
Silver
24.56
-0.4%
Brent Crude
86.09
-0.2%
Top 40
68,080
+0.6%
All Share
74,278
+0.5%
Resource 10
56,967
+2.4%
Industrial 25
103,572
+0.3%
Financial 15
16,456
-0.4%
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