South African rand muted ahead of business activity PMI
JOHANNESBURG: The South African rand was little changed in early trade on Thursday as a weaker dollar offered support, while locally focused investors awaited the latest private-sector purchasing managers’ index (PMI) data. At 0618 GMT the rand traded at 16.04 against the dollar , a whisker away from its previous close of 16.0525. The US dollar was down 0.2% against a basket of currencies as…
The South African rand remained stable in early trading on Thursday as a weaker dollar provided support, and locally focused investors awaited the latest private-sector purchasing managers' index (PMI) data. At 0618 GMT, the rand was trading at 16.04 against the US dollar, just a fraction away from its previous close of 16.0525.
Meanwhile, the US dollar slipped by 0.2% against a basket of currencies as investors awaited nonfarm payrolls data to better gauge the Federal Reserve's future policy stance. As with other emerging market currencies, the rand's movement is largely influenced by global factors, including U.S. economic data and geopolitical events.
South African domestic investors will be closely watching the August S&P Global whole-economy PMI, set to be released at 0715 GMT, for insights into the country's business conditions. The manufacturing PMI released on Tuesday revealed that South African business activity declined further in August, dropping to its lowest level this year, indicating a weak start to the second half of the year.
The benchmark 2035 government bond also showed minimal change in early trading, with a yield of 8.65%.
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