South African rand retreats after strong US jobs data

JOHANNESBURG, June 6 (Reuters) - The South African rand was flat against a firmer dollar on Friday, after the world's largest economy recorded stronger-than-expected employment data.

At 1413 GMT the rand traded at 17.7775 against the dollar ZAR=D3, little changed from Thursday's closing level, after gaining in early trade when the South African Reserve Bank reported an increase in foreign reserves last month.

South Africa's net foreign reserves rose to $64.804 billion at the end of May from $64.318 billion in April, central data showed on Friday.

The greenback =USD last traded about 0.5% stronger against a basket of currencies after a U.S. Labor Department report showed non-farm payrolls increased 139,000 in May, compared with estimates for a rise of 130,000, according to economists polled by Reuters.

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.

Next week, domestic investors will look to manufacturing ZAMAN=ECI and mining ZAMNG=ECI data to gauge the health of Africa's most industrialised economy.

Attention will also be on the country's long-delayed budget.

On Wednesday, a key parliamentary committee backed the national budget's fiscal framework and revenue proposals, clearing the path for a vote in the lower house of parliament on June 11.

The Johannesburg Stock Exchange's Top-40 index .JTOPI was last down bout 0.2%.

South Africa's benchmark 2035 government bond ZAR2035= was weaker, as the yield rose 3 basis points to 10.08%.