Rand firms as dollar rally pauses, stocks down

The rand firmed against the dollar early on Friday as the dollar’s rally paused, with investors waiting for monthly US jobs data later in the day.

The rand was 0.24% stronger at 14.82 per dollar at 0716 GMT, having closed in New York at 14.85.

“A strong September US non-farm payrolls figure is likely to stir market volatility,” Rand Merchant Bank analysts wrote in a note. “If Wednesday’s strong read of US private employment is anything to go by, we are in for a bumpy ride.”

The private payroll numbers were seen as boosting the odds that US jobs data for September would also be stronger than expected, likely indicating the tightening cycle by the Federal Reserve will continue.

In fixed income, the yield on the benchmark government bond due in 2026 rose 4.5 basis points to 9.245%.

On the stock market, the Top 40 Index was down 0.94% while the broader all-share fell 0.74% in early trade.

Shares in MTN Group fell more than 9% after a Bloomberg report that Nigeria is seeking to charge 15% interest on an $8 billion claim.