South Africa’s rand weakened on Tuesday, pressured by a strengthening U.S. dollar after positive economic data reinforced expectations that the Federal Reserve would remain cautious about cutting interest rates.
By 1524 GMT, the rand was trading at 18.6350 to the U.S. dollar, down about 0.3% from its previous close.
Data from the United States showed that job openings in November exceeded forecasts, rising to 8.098 million, indicating a resilient labour market. Additionally, activity in the U.S. services sector increased in December, further bolstering economic optimism.
The dollar gained ground following the release of the data, with the greenback last trading 0.1% stronger against a basket of currencies.
Earlier in the day, the risk-sensitive rand had briefly advanced after a Washington Post report suggested that aides to President-elect Donald Trump were considering tariff proposals that marked a departure from his hardline campaign promises for 2024. However, Trump’s denial of the report reversed some of the dollar’s earlier losses, dampening the rand’s gains.
On South Africa’s stock market, the Top-40 Index (.JTOPI) closed around 1% lower, reflecting broader market pressures.
South Africa’s benchmark 2030 government bond weakened in the bond market, with its yield rising by 2 basis points to 9.05%.
