South African rand gains as China data boosts risk-taking

JOHANNESBURG: The South African rand gained in early trade on Wednesday after China’s manufacturing activity expanded at its fastest pace since April 2012, fuelling risk-on appetite globally.

At 0522 GMT, the rand traded at 18.2900 against the dollar, more than 0.3% stronger than its previous close.

China is South Africa’s largest trading partner, so positive news about the health of its economy tends to lift South African asset prices.

South African rand under pressure ahead of raft of economic data

The safe-haven US dollar edged lower on the revival of activity in China. South Africa’s benchmark 2030 bond slipped in early deals, with the yield rising 4.5 basis points to 10.110%.