Rand Rebounds on Slower US Job Growth

The South African rand has strengthened against the dollar as slower job growth in the US weighed on the greenback. The data from ADP, a private payrolls service, showed that US private sector employment increased less than expected in August.

The slower-than-expected job growth reinforced expectations of a more cautious Federal Reserve policy path, which in turn supported risk-sensitive currencies such as the rand.

The rand traded at 16.0425 against the dollar at 1413 GMT, up around 0.8% from its previous close. The currency had previously seen gains reduced by renewed tensions in the Middle East.