Market News

JOHANNESBURG, May 8 (Reuters) – The South African rand weakened in early trade on Thursday ahead of the release of domestic manufacturing data.

At 07:18 GMT the rand traded at 18.31 against the dollar ZAR=D3, about 0.2% weaker than Wednesday’s close.

Statistics South Africa is scheduled to publish March manufacturing output data ZAMAN=ECI at 1100 GMT.

Economists polled by Reuters predict the manufacturing sector will register year-on-year growth after declining in the previous four months.

A research note by local bank Nedbank pinned the expected growth on a relative reprieve from power outages and port challenges.

Central bank data early on Thursday showed a rise in the country’s net foreign reserves to $64.318 billion at the end of April from $63.167 billion in March.

The risk-sensitive rand is also likely to take its direction from dollar movements as financial markets await the outcome of the U.S.-China trade talks this weekend, analysts said.

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The benchmark 2030 government bond ZAR2030= weakened slightly in early deals, as the yield rose 2 basis points to 8.905%.

(Reporting by Sfundo Parakozov; Editing by Alexander Winning, Aidan Lewis)