Market News

JOHANNESBURG, Nov 21 (Reuters) – South Africa’s currency and stocks dropped on Friday, as investors dumped riskier assets in the wake of a U.S. jobs report that failed to provide clarity on a near-term path for the Federal Reserve’s interest rates.

At 0740 GMT, the rand traded at 17.2750 against the dollar, down 0.3% from Thursday’s closing level.

The Top-40 index on the Johannesburg Stock Exchange (JSE) was last down 2.2%.

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“With stock markets suffering an ugly down day in the U.S. overnight, this is where the risk for the rand and South African markets lies,” ETM Analytics said in a research note.

“Increased volatility in these markets will translate into a lower risk appetite, which will impact the performance of SA bonds, the JSE, and, in turn, the rand.”

The rand was little moved after South Africa’s central bank cut its main lending rate on Thursday.

The rate cut came at the first monetary policy meeting since the bank’s inflation target was lowered and eased concerns that the new goal would prevent it from cutting rates.