South African rand drifts lower; manufacturing and mining data due this week

Login

Register

http://www.clubofmozambique.com/

South African rand drifts lower; manufacturing and mining data due this week

9:30 CAT | 10 Jul 2023

File photo: Reuters

The South African rand drifted lower against the dollar in early trade on Monday, at the start of a week in which local manufacturing and mining data will be released.

Analysts cited U.S. consumer inflation data on Wednesday as potentially a crucial driver for the rand.

“From a multi-day/week perspective, (the dollar/rand exchange rate) is in no man’s land … and looking for direction from U.S. CPI,” Rand Merchant Bank analysts said in a research note.

At 0610 GMT, the rand traded at 18.8850 against the dollar ZAR=D3, around 0.1% weaker than its previous close.

Like other emerging market currencies, the risk-sensitive often takes cues from big global drivers when there is little going on locally.

Statistics South Africa will release May manufacturing output ZAMAN=ECI on Tuesday and mining figures ZAMNG=ECI on Thursday.

South Africa’s benchmark 2030 government bond ZAR2030= was flat early on Monday, the yield at 10.770%.

Source: Reuters