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 investors strapped in for US nonfarm payrolls data that could help shape expectations for the Federal Reserve’s next policy move. The rand, like other emerging market currencies, tends to take direction from global factors, including U.S. economic data and geopolitical developments. Domestic investors will look to the August S&P Global whole-economy PMI at 0715 GMT for clues on business conditions in the country. A manufacturing PMI released on Tuesday showed that South African business activity slumped further in August, falling to its lowest level this year and signalling a weak start to the second half of the year. South Africa’s benchmark 2035 government bond was also little changed in early deals, with the yield at 8.65%.
