JOHANNESBURG, April 6 (Reuters) – The South African rand weakened against the dollar on Thursday as investors awaited U.S. jobs data and its implications for the Federal Reserve’s monetary policy.
At 1551 GMT, the rand traded at 18.2325 to the dollar, about 1% weaker than its previous close.
The dollar index , which measures the currency against six rivals, was holding steady at 101.87.
With no major local economic data due until Tuesday, the rand is taking its cues from global drivers.
Investors will be closely looking at U.S. non-farm payrolls report for March which is due Friday, when many markets globally are closed.
While a slew of sluggish economic data this week has caused traders to scale back bets on how much longer U.S. rates would need to stay in restrictive territory, it has simultaneously reignited recession fears.
“The U.S. dollar consequently gained traction from its safe-haven appeal while the pro-growth aspect of the South African rand has suffered,” DailyFX analyst Warren Venketas said.
Lower commodity prices driven by weak U.S. economic data have added to the rand’s weakness, he said.
On the Johannesburg Stock Exchange, the blue-chip Top-40 (.JTOPI) index and the broader All-share index (.JALSH) ended the day about 0.6% up.
The resources sector (.JRESI) drove strength in the market, closing over 1% higher.
South Africa’s benchmark 2030 government bond was weaker, with the yield up 5 basis points to 9.830%.
Reporting by Tannur Anders and Bhargav Acharya
Editing by Alexander Winning, Nellie Peyton
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