Rand holds steady as US jobs data raises prospect of further Fed rate hikes
US hourly earnings growth has risen to its highest level since 2009
The rand held on to firmer levels against the dollar on Friday afternoon despite US nonfarm payroll data coming in better than expected, thereby increasing the likelihood of a more aggressive stance on interest rates by the US Federal Reserve. The rand was off its best levels of the day, but was still firmer when compared to overnight levels. The dollar rose sharply against the euro, as did US bond yields, on the prospects of further hikes. "The latest data does offer further support to the view that the US economy is very strong and that things are looking very positive," Oanda analyst Craig Erlam said. Nonfarm payrolls increased by 201,000 in August, following an downwardly revised 147,000 in July and above market expectations of 191,000.
In August, average hourly earnings for all employees on private nonfarm payrolls rose by 10 US cents to $27.16. Over the year, average hourly earnings have increased by 77c, or 2.9%, from an expected 2.7%, and the highest increase since 200...
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