Rand falls as global investors reduce exposure to emerging-market currencies
The rand was weaker in cautious trade on Friday afternoon, with market focus squarely on the US jobs print for January.The market expects the US to have created 180,000 jobs in January from 148,000 in December, with the report expected to be closely scrutinised for signs of upward wage pressure in the US.The Fed has indicated it believes the US is reaching full employment, and that higher wages and inflation will follow suit, but this has yet to materialise. Wages are expected to have risen by 2.6% in January, up from 2.5% in December, which would be an improvement, but not enough to satisfy the doubters, said Oanda analyst Craig Erlam.Analysts have warned that the dollar is due for a significant rebound, having recently become de-coupled from yields on treasuries, which have surged since Thursday.The Fed has hinted at three interest-rate increases this year, but analysts believe there is room for four, amid fears the US economy could overheat.At 3pm, the rand was at R11.9894 to the...
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