World Markets

South Africa's rand firms ahead of data hurdles

Credit: REUTERS/Siphiwe Sibeko

South Africa's rand firmed early on Thursday as dollar investors took profits on the local currency's recent slide, ahead of a key jobs report from the United States later in the week.

JOHANNESBURG, Oct 3 (Reuters) - South Africa's rand firmed early on Thursday as dollar investors took profits on the local currency's recent slide, ahead of a key jobs report from the United States later in the week.

At 0600 GMT, the rand ZAR=D3 was 0.26% firmer at 15.2500 per dollar versus a close of 15.2900 overnight in New York.

The rand had shed around 6% against the greenback since mid-September, slumping to a 1-month low this week, as local data indicating a sluggish economic recovery and intensifying fears of a global growth slowdown weighed.

The dollar was also dragged down by broadening of global trade frictions, sliding to fresh one-week lows against the euro and yen, as Washington won approval to levy tariffs on $7.5 billion worth of European Union goods, threatening to trigger a transatlantic trade war.

Investors will now be eyeing the IHS Markit whole economy purchasing manager's September survey ZAPMIM=ECI at 0715 GMT, and the U.S. nonfarm payrolls release on Friday.

Bonds were a touch firmer, with the yield on the benchmark government issue due in 2026 ZAR186= down 1 basis point to 8.28%.

(Reporting by Mfuneko Toyana; editing by Uttaresh.V)

((mfuneko.toyana@thomsonreuters.com; +27117753153; Reuters Messaging: mfuneko.toyana.thomsonreuters.com@reuters.net))

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