Rand steady as markets await US jobs data and Iran developments

The rand held steady in early trade on Tuesday, as investors weighed conflicting signals over potential talks between the United States and Iran and looked ahead to key US labour market data that could shape the Federal Reserve's next move on interest rates.

Reuters reports that this morning the rand traded at 16.5150 against the dollar, barely changed from its previous close.

Mixed signals from Washington and Tehran over the status of negotiations to end their five-month-old conflict added to the uncertainty, with a fresh attack on shipping near the Strait of Hormuz underlining the risks facing global energy flows.

The dollar, meanwhile, bounced off a one-and-a-half-month low to trade at 100 against a basket of currencies, as traders digested developments in the Middle East.

Oil prices also firmed, rising about 1% after tumbling in the previous session.

"If we are to see some movement [in the rand] this week, that rests with any peace deal between the U.S. and Iranians and the employment data coming out on Friday," said Adam Phillips of Umkhulu Treasury.

With little domestic data on the calendar, the rand – like other emerging-market currencies – continues to take its cue largely from global factors, including US economic releases and geopolitical developments.

South Africa's benchmark 2035 government bond was unchanged in early trade, with the yield holding steady at 8.49%.

SOURCE: Reuters

LINK: South African rand steady with US job data and Iran in focus

PHOTO CREDIT: EBC Financial Group