Currencies (5.7.04)
The rand leaped more than 2% against the dollar on Friday after surprisingly weak US jobs data knocked the greenback sharply weaker, making a near-term breach of R6 to the dollar look possible.
The rand firmed by 16c to R6,1125 against the dollar - a seven-month peak tested earlier last week - after news that the pace of jobs created in the US slowed abruptly in June, making aggressive interest rate hikes there look unlikely in the near term.
The rand traded below R6 to the dollar in October 1999. Its gains against the dollar so far this year stand at about 9%, making it the world's start performer. Ona trade weighted basis, it has appreciated by about 1,2%.
The dollar fell sharply on Friday as unexpectedly weak reports on US jobs, factory orders and durable goods bolstered the market's view that the Federal Reserve could raise interest rates at a measured pace.
Most currency strategists had looked for the Fed to be more aggressive in tightening monetary policy as that would enhance the lure of US dollar based assets for global investors.
