JOHANNESBURG (Reuters) -South Africa’s rand weakened against the U.S. dollar on Tuesday after a drop in fourth quarter local employment figures, and ahead of an interest rate decision the following day.
At 1523 GMT, the rand traded at 18.9925 against the dollar, about 0.5% weaker than its previous close.
The dollar was little changed against a basket of currencies.
South Africa’s formal sector employment, excluding agriculture, fell 1.8% in the fourth quarter of 2023 compared with the previous quarter statistics agency data showed.
South African investor focus is firmly on an interest rate decision by the South African Reserve Bank due on Wednesday.
The bank is widely expected to keep its repo rate steady at 8.25%, and wait until the third quarter to start cutting.
On the stock market, the Top-40 index closed 0.56% higher and the broader all-share index was up 0.44%.
South Africa’s benchmark 2030 government bond was weaker, with the yield up 10.5 basis points to 10.570%.
(Reporting by Bhargav Acharya and Nellie Peyton; Editing by Andrew Heavens and Louise Heavens)
