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Johannesburg - The rand held broadly steady against the dollar in early Friday trade although investors remained jittery ahead of US jobs data that should give a clue about the timing of the Federal Reserve's withdrawal of stimulus.
Domestic mining concerns were also hanging over the local currency.
At 08:49, the rand was at R10.0335/$, compared to a close of R10.0260 in New York time on Thursday.
The unit had been buoyed by a perk in risk appetite on Thursday after the European Central Bank said interest rates would remain low in the region.
However, fears that the United States Federal Reserve would withdraw its bond-buying programme as its economy gains traction is putting emerging markets under pressure as investors are likely to pull back.
This weighs on local currencies such as the rand, which are already under pressure because of a yawning current account deficit traditionally funded by inflows.
"Today's US payrolls number will determine whether improved risk appetite is sustained into the weekend," Mike Keenan, a forex strategist for Absa Capital, said in a note.
A positive US jobs number will reinforce expectations that the Fed tapers its stimulus early.
"The release could set the tone for the rand for the coming weeks, given that it has become more dependent upon offshore developments," Keenan added.
An upbeat payrolls number could keep the rand weaker above the R10 level, while a disappointing outcome could see the rand recover to the R9.90 area over the coming days, he said.
The rand is also under pressure from unstable labour relations in the mining sector.
The National Union of Mineworkers on Wednesday gave diamond producer De Beers, an Anglo American subsidiary, a 48-hour strike notice after failed mediation talks to resolve a wage dispute.
The Association of Mineworkers and Construction Union has also refused to sign a government-brokered stability pact aimed at defusing tensions in the industry ahead of tough wage talks.
Reserve Bank data at 08:00 on Friday showed reserves fell more than expected in June.
A weaker gold price and a stronger dollar likely drove reserves lower in the month, analysts said.
Government bond yields rose to 8.025% on the benchmark 2026 issue, off a 7.905% close on Thursday.
Treasury is hoping to place R800m of inflation-linked paper due in 2025, 2038 and 2050 at 11:00.
Domestic mining concerns were also hanging over the local currency.
At 08:49, the rand was at R10.0335/$, compared to a close of R10.0260 in New York time on Thursday.
The unit had been buoyed by a perk in risk appetite on Thursday after the European Central Bank said interest rates would remain low in the region.
However, fears that the United States Federal Reserve would withdraw its bond-buying programme as its economy gains traction is putting emerging markets under pressure as investors are likely to pull back.
This weighs on local currencies such as the rand, which are already under pressure because of a yawning current account deficit traditionally funded by inflows.
"Today's US payrolls number will determine whether improved risk appetite is sustained into the weekend," Mike Keenan, a forex strategist for Absa Capital, said in a note.
A positive US jobs number will reinforce expectations that the Fed tapers its stimulus early.
"The release could set the tone for the rand for the coming weeks, given that it has become more dependent upon offshore developments," Keenan added.
An upbeat payrolls number could keep the rand weaker above the R10 level, while a disappointing outcome could see the rand recover to the R9.90 area over the coming days, he said.
The rand is also under pressure from unstable labour relations in the mining sector.
The National Union of Mineworkers on Wednesday gave diamond producer De Beers, an Anglo American subsidiary, a 48-hour strike notice after failed mediation talks to resolve a wage dispute.
The Association of Mineworkers and Construction Union has also refused to sign a government-brokered stability pact aimed at defusing tensions in the industry ahead of tough wage talks.
Reserve Bank data at 08:00 on Friday showed reserves fell more than expected in June.
A weaker gold price and a stronger dollar likely drove reserves lower in the month, analysts said.
Government bond yields rose to 8.025% on the benchmark 2026 issue, off a 7.905% close on Thursday.
Treasury is hoping to place R800m of inflation-linked paper due in 2025, 2038 and 2050 at 11:00.
