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Johannesburg - The rand touched its strongest level in more than a week against the dollar on Friday as U.S. jobs numbers backed the case to hold off a taper in US monetary stimulus, boosting emerging market currencies.
The rand climbed to R10.9400/$ after the non-farm payrolls report, a level last reached on January 29, before losing some steam to R11.0670/$ by 16:24 GMT, 0.29% off Thursday's close.
It hit a five-year low of R11.3900/$ in late January.
"Non-farm payrolls disappointed again this month and emerging markets might take some respite in the fact that maybe the Fed will refrain from the path of tapering," said Bidvest Bank chief dealer Ion de Vleeschauwer.
"It just takes the wind out of the dollar's sails just a little bit."
A large chunk of the US Federal Reserve's hefty monthly asset purchases have found their way into high-yielding emerging markets.
Government debt edged higher on Friday, with the yields for the benchmark 2026 instrument slipping three basis points to 8.675%.
Yields on the 2015 paper at the shorter end of the curve shaved off half a basis point to 7.095%.
Investor sentiment towards South African assets has however been lukewarm in the face of strikes in the mining sector and increasingly violent protests against poor services in some townships.
Tensions are likely to remain high in the run-up to general elections called for May 7 by President Jacob Zuma.
The rand climbed to R10.9400/$ after the non-farm payrolls report, a level last reached on January 29, before losing some steam to R11.0670/$ by 16:24 GMT, 0.29% off Thursday's close.
It hit a five-year low of R11.3900/$ in late January.
"Non-farm payrolls disappointed again this month and emerging markets might take some respite in the fact that maybe the Fed will refrain from the path of tapering," said Bidvest Bank chief dealer Ion de Vleeschauwer.
"It just takes the wind out of the dollar's sails just a little bit."
A large chunk of the US Federal Reserve's hefty monthly asset purchases have found their way into high-yielding emerging markets.
Government debt edged higher on Friday, with the yields for the benchmark 2026 instrument slipping three basis points to 8.675%.
Yields on the 2015 paper at the shorter end of the curve shaved off half a basis point to 7.095%.
Investor sentiment towards South African assets has however been lukewarm in the face of strikes in the mining sector and increasingly violent protests against poor services in some townships.
Tensions are likely to remain high in the run-up to general elections called for May 7 by President Jacob Zuma.
