The rand was slightly softer against the dollar on Monday morning as the local currency gave up some of the gains it made on Friday thanks to the US nonfarm payroll data. The US jobs report showed that wages were subdued, which could reduce the likelihood of the US Federal Reserve increasing interest rate this year. The central bank is expected to implement the first rate increase in June. TreasuryOne currency dealer Andre Botha said that average hourly earnings were disappointing, and this had led to dollar weakness and boosted the rand. He said the weaker that average hourly earnings indicated that wages would not have the expected effect on inflation and could push the Fed’s increases schedule further out. "This was good news for the rand as the currency, along with all risky assets, enjoyed a new lease on life, and the rand pushed closer to the R13.20 level. The question is whether the rand will have the momentum this week to push through the level and carry on with its downward...
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