At 1328 GMT, the rand traded at 19.5150 against the dollar, near its previous close of 19.5125. It earlier touched 19.6400 – its lowest since June – after non-farm payrolls data out of the United States showed a larger than expected increase in jobs for September. The dollar last traded around 0.3% stronger against a basket of global currencies.
Reuters: The safe-haven dollar and Japanese yen edged higher on Monday as violence in the Middle East spooked markets, while a blowout U.S. jobs report gave the greenback a further leg up. The Israeli shekel tumbled more than 3% to an almost eight-year low of 3.9880 per dollar early in the Asian session, before trimming some of those losses in volatile trade after the Bank of Israel announced it will sell up to $30 billion of foreign currency in the open market to maintain stability.
The dollar index was last 0.1% higher at 106.33, drawing additional support from Friday’s data showing U.S. employment increased by the most in eight months in September, potentially setting up for a higher-than-expected inflation print later this week.
A business survey on Wednesday showed British services companies suffered a less severe downturn in September than first feared, reflecting a surprise fall in inflation and the Bank of England’s decision to leave interest rates on hold. “The upwards revision to the September flash PMIs suggests the UK is not heading into recession for now, something likely to be confirmed in the upcoming GDP print,” said Rees. August GDP numbers for the UK will be released on Thursday.
“Given the tightness already facing physical oil markets in Q4 2023, an immediate reduction in Iran’s oil exports risks pushing Brent futures above $US100/bbl in the short term.” Israel pounded the Palestinian enclave of Gaza on Sunday, killing hundreds of people in retaliation for one of the bloodiest attacks in its history when Islamist group Hamas killed 700 Israelis and abducted dozens more.The danger of disruptions to supply was enough to drive Brent up $3.14 to $87.72 a barrel, while U.S.