JOHANNESBURG, Nov 3 Reuters The South African rand extended gains on Friday as U.S. Treasury yields fell and data out of the U.S. showed fewer than expected jobs had been created in October, boosting hopes the Federal Reserve is done raising interest rates.

At 1513 GMT, the rand traded at 18.2475 against the dollar , about 1 stronger than its previous close.

The dollar last traded around 0.95 weaker against a basket of global currencies.

U.S. Treasury yields extended losses this week after the Fed held off on an interest rate hike on Wednesday and nonfarm payrolls increased by less than expected in October, said Danny Greeff, cohead of Africa at ETM Analytics.

Like other risksensitive currencies, the rand often takes cues from global factors like U.S. monetary policy.

Given how overvalued the USD is, the prospect of rate cuts in the coming quarters could trigger a deeper correction through the months ahead, and the ZAR is poised to capitalise, Greeff added.

Locally, South African private sector activity fell in October after holding steady in September, hurt by weak customer demand and high fuel prices, a survey showed on Friday.

On the Johannesburg Stock Exchange, the bluechip Top40 index closed up 2.26, while the broader allshare index ended 2.06 higher.

South Africa39;s benchmark 2030 government bond was stronger, the yield down 7 basis points to 10.295.

Reporting by Tannur Anders Editing by Alexander Winning, Bhargav Acharya and Alison Williams

Source Reuters