JOHANNESBURG (Reuters) -South Africa’s rand weakened on Thursday as the U.S. dollar jumped after the release of strong employment data, which added to expectations the Federal Reserve could keep hiking rates at an aggressive pace.
At 1540 GMT, the rand traded at 17.2850 against the dollar, 2.4% weaker than its previous close.
The dollar index, which measures the U.S. dollar against six rivals, was up 0.902% at 105.15.
The risk-sensitive rand often takes its cues from global drivers such as the U.S. monetary policy in the absence of major local events.
The S&P Global South Africa PMI survey showed on Thursday that activity in the private sector expanded in December but at a slower pace than in November as high prices and power cuts depressed client demand.
On the Johannesburg stock market, the Top-40 and the broader all-share ended over 1% higher.
The government’s benchmark 2030 bond was weaker in afternoon deals, with the yield up 5 basis points to 10.060%.
(Reporting by Bhargav Acharya and Anait MiridzhanianEditing by Vinay Dwivedi and Barbara Lewis)
