South African rand firms ahead of key manufacturing data

JOHANNESBURG: The South African rand firmed in early trade on Thursday ahead ​of local manufacturing production data due ‌later in the session, even as oil prices rose and the dollar remained firm following renewed US-Iran ​tensions.

At 0624 GMT, the rand traded ​at 16.3450 against the dollar , about 0.5% ⁠up from its previous close.

Statistics South ​Africa will publish May manufacturing output data ​at 1100 GMT, offering investors clues on the health of Africa’s most industrialised economy.

Economists polled by ​Reuters expect manufacturing output to have ​fallen 3.2% year-on-year. Nedbank economists forecast a 3% contraction.

“The ‌sector ⁠continues to grapple with high domestic cost structures, caused by inefficient and expensive general economic infrastructure, which has systematically eroded ​the sector’s ​price competitiveness,” ⁠Nedbank economists said in a research note, adding that manufacturers ​have also had to absorb higher ​US ⁠tariffs and the recent surge in local fuel prices.

South Africa’s benchmark 2035 government ⁠bond ​was firmer in early deals, ​as the yield fell 4.5 basis points to 8.33%.