By Ukumbi Afrika 
Friday, 7th August 2026
Johannesburg– The South African rand strengthened slightly in early trading on Friday, supported by rising gold prices as investors awaited the release of the closely watched U.S. non-farm payrolls report, which could provide fresh guidance on the U.S. Federal Reserve's interest-rate outlook.
By 07: 03 GMT, the rand traded at 16.34 per U.S. dollar, around 0.2% stronger than its previous close.
Gold, one of South Africa's leading export commodities, continued to rally and was on course for its strongest weekly performance since January. The precious metal benefited from weaker oil prices as easing geopolitical tensions in the Middle East helped reduce inflation expectations, boosting demand for safe-haven assets.
Meanwhile, the U.S. dollar remained largely steady against a basket of major currencies ahead of the U.S. employment report scheduled for 12: 30 GMT. Economists expect the world's largest economy to have added 80, 000 jobs in July, while the unemployment rate is forecast to remain unchanged at 4.2%.
According to Andre Cilliers, Currency Strategist at TreasuryONE, market participants are likely to remain cautious ahead of the data release.
"With today's payrolls report and the long weekend ahead, traders are expected to remain cautious, with many preferring to maintain long U.S. dollar positions until there is greater clarity on the Fed's policy outlook, " he said.
On the domestic front, South Africa's central bank reported that net foreign reserves increased to $71.76 billion at the end of July, up from $71.34 billion recorded in June.
Investor attention will shift next week to a series of key domestic economic indicators, including manufacturing production and second-quarter employment figures on Tuesday, followed by mining production data on Thursday. The releases are expected to provide further insight into the performance of Africa's most industrialised economy.
On the equities market, the Johannesburg Stock Exchange's Top-40 Index advanced 0.7% in early trading.
South Africa's benchmark 2035 government bond weakened modestly, with its yield rising 4 basis points to 8.43%.
Source: Reuters
Reporting: Nilutpal Timsina
Edited by: Mark Potter
Adapted by: Ukumbi Afrika Magazine