JOHANNESBURG: South Africa’s rand was weaker in early trade on Friday ahead of a purchasing managers’ index (PMI) for the domestic manufacturing sector, while global investors geared up for US jobs data for hints on the Federal Reserve’s interest rate path.
At 0823 GMT, the rand traded at 17.65 against the US dollar, about 0.3% softer than its previous close.
The dollar last traded about 0.2% firmer than its previous close.
The rand is waiting for the US non-farm payroll data expected later on Friday, the final major risk event of the week, which has the potential to influence Fed policy, said ETM Analytics in a research note.
The Fed will announce its latest interest rate decision next week.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as US monetary policy in addition to local factors.
South African rand slips ahead of producer inflation, trade data
The Absa PMI for October is set to be released at 0900 GMT and should shed light on conditions in South Africa’s manufacturing sector.
On the stock market, the blue-chip Top-40 index was last up about 0.9%.
South Africa’s benchmark 2030 government bond was slightly weaker in early deals, with the yield up 1 basis points to 9.325%.
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