JOHANNESBURG (Reuters) -South Africa’s rand and stocks jumped on Friday as the U.S. dollar fell after U.S. jobs data raised hopes the Federal Reserve could soon soften its stance on interest rates.
At 1738 GMT, the rand traded at 18.9350 against the dollar, 2.58% stronger than its previous close.
Data from the Bureau of Labor Statistics showed the U.S.
economy generated 261,000 jobs in October, which was higher than an estimate of 200,000, according to a Reuters poll of economists. But the pace is slowing and the unemployment rate rose to 3.7%, suggesting some loosening in labour market conditions, which could allow the Federal Reserve to shift towards smaller interest rates rises starting in December.
The dollar index, which measures the currency against six major rivals, was last down more than 1.5% at 111.2.
On the Johannesburg Stock Exchange, the Top-40 index closed 5.49% higher, while the broader all-share ended up 4.93%.
The resources index closed more than 9% higher, boosted by Anglo American, Gold Fields, Sasol, Sibanye-Stillwater and others.
The South African government’s benchmark 2030 bond was weaker in afternoon deals, with the yield up 5 basis points to 10.675%.
(Reporting by Bhargav Acharya and Anait Miridzhanian; Editing by Subhranshu Sahu and Jane Merriman)
