South African rand firms in early trade; mining data in focus

JOHANNESBURG: South Africa’s rand bounced back on Thursday, after weakening over the past three days as investors awaited mining data for November.

At 0812 GMT, the rand traded at 19.0025 against the dollar , 0.3% stronger than its previous close.

“Looking ahead, the rand will remain sensitive, and one would struggle to argue for a strong recovery so long as the fixed income and rates markets are uncertain of the outlook on rates,” ETM Analytics said in a note.

Statistics South Africa will publish November mining output around 0930 GMT.

Economists polled by Reuters predicted a 3% increase, in annual terms.

The rand weakened on Monday and Tuesday as the dollar traded stronger.

South African rand extends losses against strong dollar

The South African currency extended its losses on Wednesday, as the greenback hit a one-month high due to lowered expectations that the Federal Reserve will cut interest rates in March.

South Africa’s benchmark 2030 government bond was firmer in early deals, with the yield down 3.5 basis points to 9.790%.