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JOHANNESBURG. — The rand dipped against the dollar yesterday morning, backing away from a five-month high it reached on Friday, despite a favourable global backdrop. The dollar remains under significant pressure against the other major currencies, notably the euro and the yen, mainly because of uncertainty about the US interest rate outlook. The gold price held at multi-month highs of $1 294,84 ounces in early trade while platinum built on its recent upward march. Rand Merchant Bank analyst Isaah Mhlanga said this week’s data would provide an indication of whether the US Federal Reserve would hike rates in June.

“If the data print stronger than expected, then the hawks will start to lead the market, but if it disappoints, then the earliest rate hike will be pushed out to September.” The key area of focus will be the US non-farm payrolls data for April, due for release on Friday. Meanwhile, the Reserve Bank of Austria cut interest rates by 25 basis points earlier on yesterday.

At 8.47am‚ the rand was at 14,2577 to the dollar from 14,2712 at Monday’s close. It was at 16,4781 against the euro from 16,4622 previously‚ and at 20,9954 against the pound from 20,9431 previously. The euro was at $1,1558 from $1,1534. — BDLive.