South African rand stable before PMI data

JOHANNESBURG: The South African rand was stable in early trade on Tuesday ahead of the release of a purchasing managers’ index (PMI) survey.

At 0655 GMT, the rand traded at 18.2750 against the dollar , little changed from Monday’s close of 18.2650.

The currency gained roughly 1% against a weaker dollar on Monday, after state utility Eskom said it was optimistic about the power outlook over the southern hemisphere winter, aiming for no electricity cuts in the next four months.

Investors will look to the S&P Global April whole-economy PMI at 0715 GMT for a window on business conditions in Africa’s biggest economy.

South African rand stable ahead of Eskom’s winter outlook briefing

Last week a gauge of local manufacturing sentiment dropped sharply in April, with survey respondents citing uncertainty linked to global trade tensions and local politics.

South Africa’s benchmark 2030 government bond was also little changed in early deals, with the yield up 1 basis point at 8.875%.