The South African rand edged higher against a weaker dollar in early trade on Thursday, as investors awaited the U.S. nonfarm payrolls report for cues on the Federal Reserve's monetary policy path.
Here are a few details:
At 0656 GMT, the rand traded at 16.3750 against the dollar FX_IDC:USDZAR, roughly up 0.2% from its previous close.
The U.S. dollar TVC:DXY was down 0.2% against a basket of currencies, while oil prices dropped about 1% on Thursday, after Qatar said Iran and the U.S. had made progress in indirect talks focused on the Strait of Hormuz, which handled one-fifth of global oil supply before the war.
U.S. nonfarm payrolls are expected to show employers added 110,000 jobs in June, while the unemployment rate is forecast to remain unchanged at 4.3%, according to the median estimate in a Reuters poll of economists.
In the absence of major domestic economic data, the South African rand, like other risk-sensitive currencies, tends to be driven by global factors, including U.S. economic data releases and policy developments.
South Africa's benchmark 2035 government bond (ZAR2035=) was weaker in early deals, as the yield rose 2.5 basis points to 8.295%.