South African rand weakens as U.S. dollar extends gains

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

JOHANNESBURG, Feb 6 (Reuters) - South Africa's rand weakened on Monday, as the U.S. dollar jumped on expectations that the U.S. Federal Reserve might pursue its inflation-fighting interest rate hikes for longer.

At 1550 GMT, the rand traded at 17.6975 against the dollar, 1.24% weaker than its previous close.

The dollar was last up 0.55% at 103.700 against a basket of currencies riding on a blockbuster U.S. jobs report last Friday.

In the absence of major local economic developments, the risk-sensitive rand often takes cues from global drivers.

The markets will keep a close eye on the Investing in African Mining Indaba conference this week, which is bringing together mining company executives, investors, and mines ministers from across Africa and beyond to discuss industry issues and to network.

The focus will also be on President Cyril Ramaphosa's annual State of the Nation Address in parliament on Thursday and a possible cabinet reshuffle.

Shares on the Johannesburg Stock Exchange followed similar moves as global equities and ended lower, with both the broader all-share index (.JALSH) and the top-40 index ending about 0.8% down.

The government's benchmark 2030 bond was weaker in early deals, with the yield up 11.5 basis points at 9.700%.

Reporting by Anait Miridzhanian and Bhargav Acharya; Editing by Louise Heavens

Our Standards: The Thomson Reuters Trust Principles.