Johannesburg - South Africa's rand was still on the back foot against the dollar on Thursday after losses overnight, responding to strong US data that kept alive expectations of a rate hike by the Federal Reserve this year.
In contrast, local data showing a contraction in new vehicle sales pointed to continued strain on Africa's most advanced economy, which has struggled to grow significantly since a 2009 recession.
The rand was at 12.2900 to the dollar by 06h39 GMT, down 0.33 percent from its New York close on Tuesday.
Government bonds tracked the weaker currency, with the yield for debt due in 2026 adding 3 basis points to 8.3 percent.
Having rallied on the back of strong US private employment numbers on Wednesday, markets were braced for further dollar gains should non-farm payrolls (NFP) data also back expectations for the Fed to lift interest rates.
“Technically the dollar is in a long-term bull trend against the rand,” Standard Bank trader Maemo Rametse said.
“A really good NFP number and we could be back above 12.30 in no time at all whereas a poor one could see us back to 12.15 again,” he added.
Reuters