JOHANNESBURG (Reuters) -The South African rand weakened to an eight-month low on Friday after U.S. non-farm payrolls data reinforced bets that the Federal Reserve will pause its rate-cutting cycle later this month.
At 1501 GMT, the rand traded at 19.1375 against the U.S. dollar, about 1.1% softer than its previous close. It earlier hit 19.2050 per dollar, its weakest level since late April last year.
The greenback was last up about 0.4% against a basket of currencies after a Labor Department report showed the U.S. economy added 256,000 jobs in December, much higher than economists’ forecasts for an increase of 160,000.
Investors have been digesting U.S. economic data this week, which points to continued resilience, while Fed speakers have taken a more conservative stance in their signalling.
On the Johannesburg Stock Exchange, the blue chip Top-40 index closed down about 0.3%.
South Africa’s benchmark 2030 government bond was also weaker, with the yield up 12 basis points at 9.265%.
(Reporting by Tannur Anders and Bhargav Acharya; Editing by David Goodman and Toby Chopra)
