The South African rand saw early gains on Thursday, ahead of the release of new domestic manufacturing data. Investors were also closely watching trade negotiations following U.S. President Donald Trump’s latest tariff threats.
As of 0635 GMT, the rand was trading at 17.7350 against the dollar, marking an increase of roughly 0.6% from its closing position on Wednesday.
In April, production had seen a significant 6.3% year-on-year drop. However, analysts polled by Reuters and economists at Nedbank are anticipating a smaller decline this time, forecasting decreases of 1.5% and 0.5%, respectively.
Despite potential improvements in the upcoming monthly data, Nedbank economists cautioned in a note that “While the monthly data may show some improvement, underlying conditions remain weak.”
Their note also referenced a purchasing managers’ index from last week, which indicated a slight uptick in manufacturing sentiment, though output remains low and logistics issues persist.
The economists added that “The sector continues to grapple with excess capacity amid subdued global and domestic demand and weak commodity prices.”
South Africa’s benchmark 2035 government bond showed little change in early trading, with its yield rising by half a basis point to 9.845%.
