South African rand steady as Iran war lifts oil, focus on US jobs data

South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS

JOHANNESBURG, Sept 2 (Reuters) – The South African rand was steady in early trade on Wednesday as investors awaited U.S. ​jobs data, while escalating Middle East conflict ‌drove oil prices higher, stoking concerns about inflation and higher interest rates.

• At 0559 GMT the rand traded at 16.1625 against ​the dollar , a whisker away from its ​previous close of 16.1688.
• The U.S. and Iran found ⁠themselves back on a war footing on Wednesday ​after the most significant exchange of fire in weeks, with ​Washington threatening more devastating strikes.
• The airstrikes on Iran pushed oil prices up 1% to a five-week high.
• Gold, South Africa’s key export, fell ​to its lowest in more than three weeks.
• Investors ​are focused on a string of U.S. labour market reports starting ‌on ⁠Wednesday and ending with Friday’s payrolls data.
• “A firm jobs print would cement September Fed pricing and leave USD-ZAR supported above 16.00, whilst a clear miss could ​cap the ​USD and ⁠give the ZAR a brief window to recover, provided oil does not spike ​further,” ETM Analytics said in a note.
• Like ​other ⁠risk-sensitive currencies, the rand tends to take its cues from global developments, including U.S. economic data and policy ⁠signals.
• South ​Africa’s benchmark 2035 government bond was ​weaker in early deals, as the yield rose 6.5 basis points ​to 8.745%.

Reporting by Anathi Madubela; Editing by Andrew Heavens