South African rand flat after four straight days of gains; eyes on US payrolls data

JOHANNESBURG, March 7 (Reuters) - South Africa's rand was little changed early on Friday as investors awaited U.S. non-farm payrolls data for dollar direction, after four consecutive days of gains for the local unit.

At 0622 GMT, the rand traded at 18.1450 against the U.S. dollar ZAR=D3, near its previous close of 18.1475.

The dollar =USD last traded about 0.2% weaker as markets were met with confusion regarding the U.S. trade policy after U.S. President Donald Trump on Thursday suspended the 25% tariffs he imposed this week on most goods from Canada and Mexico until April 2.

Trump also threatened to impose a global regime of reciprocal tariffs on all U.S. trading partners.

ETM Analytics in a research note said that Friday could mark the fifth consecutive day of rand appreciation with the market being biased against the dollar.

Markets will look to U.S. non-farm payrolls data later on Friday for dollar direction.

"Investors will wait for the payrolls data. If it disappoints, the USD-ZAR might very well retest levels closer to the 18.0000 handle," the research note added.

Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S. policy and economic data in addition to local factors.

South Africa's net foreign reserves rose to $61.733 billion at the end of February from $61.328 billion in January, central bank data showed on Friday.

South Africa's benchmark 2030 government bond ZAR2030= was little changed in early deals, with the yield at 9.055%.