South Africa's rand rises as dollar slips

JOHANNESBURG: South Africa's rand firmed in early trade on Tuesday, as the dollar drifted lower on easing pressure for US rate hikes in the wake of mixed jobs data.

At 0615 GMT, the rand traded at 14.1750 against the dollar, 0.67% stronger than its previous close.

The dollar fell, extending losses since US labour market data last week that was upbeat but not so strong as to risk bringing forward the day when the Federal Reserve might start tapering its asset buying.

Focus this week is on minutes from the Fed's latest meeting due out on Wednesday, after a hawkish tilt from the US central bank last month in which policymakers projected a start to rate hikes in 2023.

"The local currency is expected to remain in a fairly tight range until after the release of Fed's minutes on Wednesday. Analysts will be looking for further clarification on just how hawkish the Fed's outlook is," said Andre Cilliers, a currency strategist at Treasury ONE.

Riskier currencies, such as the rand, thrive on US rates remaining low because they benefit from the interest rate differential that increases their appeal for carry trade.

In fixed income, the yield on the benchmark 2030 government bond was up 2 basis points to 8.92%.