Market News
South African rand steady as PMI hits neutral mark - REUTERS
JOHANNESBURG, May 6 (Reuters) – The South African rand held steadyfor much of Tuesday’s trading session after the release of a purchasing managers’ index (PMI) survey that showed the country’s private sector showed signs of stabilisation in April.
At 1340 GMT, the rand traded at 18.25 against the dollar, little changed from Monday’s close.
The rand gained roughly 1% against a weaker dollar on Monday, after utility Eskom said it was optimistic about the power outlook over the next four months, aiming for no electricity cuts.
The dollar =USD last traded about 0.4% weaker against a basket of currencies as investors worried about U.S. President Donald Trump’s latest tariff threats. On Wednesday the global investor focus will shift to the Federal Reserve’s policy decision.
The S&P Global South Africa PMI rose to the neutral 50-point mark in April, emerging from a four-month downturn as sales picked up slightly.
That was an improvement on last week’s local manufacturing PMI, which slumped further into contractionary territory.
On the Johannesburg Stock Exchange, the Top-40 index last traded 0.4% lower. The benchmark 2030 government bond slipped, as the yield rose 6.5 basis points to 8.93%.
(Reporting by Sfundo Parakozov; Editing by Alexander Winning and Franklin Paul)
