The South African (SA) Rand edged higher against a weaker Dollar in early trade ​on Thursday, as investors awaited the United States (US) ‌nonfarm payrolls report for cues on the Federal Reserve’s monetary policy path.

The Rand traded at 16.3750 against ​the Dollar, roughly up 0.2% from its ⁠previous close.

The US Dollar was down 0.2% ​against a basket of currencies, while oil prices ​dropped about 1% on Thursday, after Qatar said Iran and the US had made progress in indirect talks focused on ​the Strait of Hormuz, which handled one-fifth ​of global oil supply before the war.

US nonfarm payrolls ‌are ⁠expected to show employers added 110 000 jobs in June, while the unemployment rate is forecast to remain unchanged at 4.3%, according to the median ​estimate in ​a Reuters ⁠poll of economists.

In the absence of major domestic economic data, the ​South African rand, like other risk-sensitive currencies, ​tends ⁠to be driven by global factors, including US economic data releases and policy developments.

SA’s benchmark ⁠2035 ​government bond was weaker in ​early deals, as the yield rose 2.5 basis points to ​8.295%.

–Reuters–