South African rand slips against dollar after stronger US jobs data

JOHANNESBURG, May 5 (Reuters) – The South African rand slipped against the dollar on Friday after stronger-than-expected U.S. jobs data signalled that the Federal Reserve could continue with its rate hike cycle.

At 1512 GMT, the rand traded at 18.4200 against the dollar , down around 0.7% from its closing level on Thursday.

Non-farm payrolls in the United States grew by 253,000 in April, above the 180,000 predicted by economists, pointing to sustained labour market strength that could compel the Fed to keep interest rates higher for longer to tame inflation.

The dollar index jumped on the report before paring gains to trade near its previous close of 101.34.

The risk-sensitive rand often takes cues from global drivers such as U.S. economic data in the absence of local catalysts.

Shares on the Johannesburg Stock Exchange recovered from their previous day’s tumble, ending the week higher.

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