South African rand slightly weaker ahead of PMI, GDP

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South African rand slightly weaker ahead of PMI, GDP

9:15 CAT | 05 Mar 2024

File photo: Reuters

South Africa’s rand was slightly weaker in early trade on Tuesday, as traders were awaiting fourth-quarter gross domestic product figures and a purchasing managers’ index (PMI) survey data.

At 0635 GMT, the rand traded at 19.0725 against the U.S. dollar ZAR=D3, about 0.1% weaker than its previous close.

The dollar =USD was up about 0.07% against a basket of global currencies.

S&P Global will release its whole-economy PMI survey at 0715 GMT, which will shed light on business conditions in Africa’s most industrialised economy in February.

A manufacturing sector PMI survey last week showed factory activity recovered in February after a steep slump the month before.

At 0930 GMT Statistics South Africa will release GDP figures for the fourth quarter of 2023. Economists polled by Reuters have predicted quarter-on-quarter growth of 0.3%, compared to -0.2% in the third quarter of last year.

A surge in the price of gold, one of South Africa’s major exports, could help boost the rand this week, said analysts at ETM Analytics.

South Africa’s benchmark 2030 government bond ZAR2030= was slightly weaker in early deals, with the yield up 0.5 basis points to 10.135%.

Source: Reuters