The South African rand gained against a softer dollar after the United States reported weaker-than-expected jobs data, but stocks on the local bourse fell sharply as traders mulled the impact of higher tariffs on the country after it failed to clinch a trade agreement with Washington.

The South African rand strengthened against the dollar on Friday, erasing earlier losses after a key report showed the US labor market cooled sharply over the past three months.

The confirmed US tariff on South Africa that will apply from 7 August is bad news for the South African economy, rand and jobs.