JOHANNESBURG (Reuters) -The South African rand strengthened against a weaker dollar on Wednesday, after U.S. jobs data showed a softening labour market.
At 1534 GMT, the rand traded at 17.8625 against the dollar, 0.61% stronger than its previous close.
The dollar index was last trading down 0.33% against a basket of currencies.
U.S. job openings dropped to a 3-1/2-year low in July, suggesting the labour market was slowing in an orderly manner, but probably not enough for the Federal Reserve to consider a big interest rate cut this month.
Like other risk-sensitive currencies, the rand often takes cues from global drivers like the direction of U.S. monetary policy in addition to local factors.
Domestically, a survey showed South African private sector activity rose in August as firms received higher volumes of new orders for the first time since April last year.
Another survey showed South African business confidence rose in the third quarter, helped by improving optimism about the business climate after the formation of a coalition government and stable electricity supply.
On the stock market, the Top-40 index closed 0.37% lower.
South Africa’s benchmark 2030 government bond was stronger, as the yield slipped 18 basis points to 9.035%.
(Reporting by Tannur Anders; Editing by Andrew Heavens and Jonathan Oatis)
