Market News
South African rand extends losses before unemployment, manufacturing data - REUTERS
BY Tannur Anders
JOHANNESBURG, Nov 12 (Reuters) – South Africa’s rand extended its losses in early trade on Tuesday to hit a two-and-a-half month low, ahead of third quarter unemployment figures and September manufacturing data.
At 0805 GMT, the rand traded at 18.0375 against the dollar, about 0.6% softer than its previous close, and its weakest level since mid-August.
The currency has traded turbulently since Donald Trump’s U.S. election win last week.
The dollar firmed against a basket of currencies.
Local investors will look to third quarter unemployment numbers at 0930 GMT and September manufacturing output data at 1100 GMT, which could give clues on the health of Africa’s most industrialised economy.
“The labour market remains a significant drag on growth,” said Andre Cilliers, currency strategist at TreasuryONE.
“While reforms under the government of national unity (GNU) may offer a glimmer of hope, businesses are likely to remain cautious on hiring until clearer signs of sustained economic momentum emerge,” Cilliers added.On the Johannesburg stock market, the Top-40 index was down about 0.8%.
South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 5.7 basis points to 9.282%.
(Reporting by Tannur Anders; Editing by Alex Richardson)
