Make Kitco Your Homepage

South Africa's rand slips after poor local manufacturing data

Kitco News

JOHANNESBURG, April 12 (Reuters) - South Africa's rand weakened past the threshold of 14.00 to the dollar early on Friday on data pointing to weak economic growth.

At 0732 GMT the rand had weakened by 0.48 percent to 14.0750 after closing at 14.0075 in New York.

Rand Merchant Bank analyst Nema Ramkhelawan-Bhana said the rand was specifically suffering from evidence of weak growth in South Africa.

Data from Statistics South Africa released on Thursday showed that mining output was down 7.5 percent year-on-year in February, while manufacturing production barely grew, rising by 0.6 percent. Ramkhelawan-Bhana added that political risk would become more apparent as national elections on May 8 approached.

"For now, the rand will trade off global happenings; this exposes it to two-way risk," she said.

In fixed income, the yield on the benchmark government bond due in 2026 was up 2 basis points to 8.510 percent in early trade.

Meanwhile in the equities market, the Top-40 index inched up 0.05 percent to 51,965 points.

(Reporting by Nqobile Dludla; Editing by Kevin Liffey)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.