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Markets

South Africa's rand weakens alongside commodity currencies

Published Updated

imageJOHANNESBURG: South Africa's rand weakened in line with other commodity-driven currencies on Tuesday as the price of gold and other metals eased.

Rand trades 0.7 percent weaker at 13.9200 by 0700 GMT, after ending Monday trade at 13.8250.

Currency mirrors gold, a key export earner for South Africa, which is down in contrast with a stronger dollar amid speculation the Federal Reserve will raise U.S. interest rates in December.

Local manufacturing output data at 1100 GMT to give pointers on state of South Africa's economy, which is seen growing at most by 0.4 percent this year.

Government bonds weaken, and yield for 10-year paper rises 4.5 basis points to 8.74 percent.

South African bourse opens flat at 0700 GMT, with both the Top-40 and All-share indices little changed from Monday's closing levels.

Copyright Reuters, 2016

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