South African rand weakens in cautious trade

JOHANNESBURG: South Africa's rand weakened early on Tuesday, remaining on the back foot after a national holiday that kept liquidity low and investors tentative ahead of local manufacturing data.

At 0700 GMT the rand was 0.07pc weaker at 17.7000 per dollar, having touched 17.7800 overnight, its weakest level in close to 12 weeks.

The currency has suffered sharp losses in the past two weeks, losing around 8pc of its value against the dollar as sentiment towards emerging market currencies soured with a pickup in the global economy seeming to be slower than initially hoped.

In the past session, stalled talks in the US Congress over a stimulus deal kept investors cautious, leaving the rand with little forward momentum.

Statistics South Africa publishes June manufacturing figures at 1100 GMT.

The figures will give investors some idea of the pace of the economic recovery since the easing of lockdown restrictions allowed for more activity.

Bonds also weakened in early trade, with the yield on the benchmark 2030, government issue adding 2 basis points to 9.255pc.