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JOHANNESBURG. – The rand gained more ground in midday trade yesterday as traders speculated that a US interest rate hike this year was less likely than had been previously expected, following the release of disappointing jobs data. US Federal Reserve Bank of Boston president Eric Rosengren said on Saturday that his confidence that the US central bank could raise rates soon had diminished, in the wake of underwhelming employment data.

The data, which were released on Friday, showed that the world’s largest economy added 142 000 jobs last month, well below the expected 201 000. The data were characterised by major revisions, as employment gains in July and August combined were 59 000 less than previously reported. The unemployment rate remained unchanged at 5,1 percent.

“The jobs report was disappointing; it seems to validate the decision (of Fed officials to hold off on lifting interest rates)”, Mr Rosengren said in an interview with The Wall Street Journal. The September jobs data “highlight that we need to continue to monitor how the data are coming in to determine when it is appropriate”, he said. – BDLive.