Market News
South African rand gains before manufacturing PMI, vehicle sales data - REUTERS
JOHANNESBURG, June 2 (Reuters) – The South African rand gained some ground against a weaker dollar in early trade on Monday, ahead of a purchasing managers’ index (PMI) survey for the domestic manufacturing sector and vehicle sales figures.
At 0602 GMT, the rand traded at 17.9475 against the dollar, about 0.2% firmer than Friday’s closing level.
The Absa PMI for May is set to be released at 0900 GMT and will shed light on manufacturing conditions in Africa’s most industrialised economy.
Local investors will then turn their focus to vehicle sales data due around 1200 GMT, giving a snapshot of consumer demand for big-ticket items.
Nedbank economists said they expect annual growth in new vehicle sales to have accelerated from 11.9% in April to 20.4% in May, reflecting last year’s low base and easing financial conditions due to interest rate cuts.
The dollar last traded about 0.2% weaker against a basket of currencies as U.S.-China trade tensions continued to simmer and investors turned defensive ahead of U.S. jobs data.
South Africa’s benchmark 2035 government bond was little changed in early deals, with the yield up 0.5 basis points at 10.16%.
(Reporting by Sfundo Parakozov; Editing by Kirsten Donovan)
