Rand gets some relief before South Africa's PMI numbers

05 November 2014 - 09:28 By REUTERS
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Johannesburg Stock Exchange.
Johannesburg Stock Exchange.
Image: MICHAEL BRATT

South Africa's rand edged up against the dollar on Tuesday, arresting a recent slide against a strong dollar before the release of domestic business-activity figures.

The rand out-performed its emerging-market peers, gaining 0.2 percent to 11.0540 per dollar by 1506 GMT. An index measuring a basket of EM currencies fell 0.42 percent, as the stronger dollar led investors to seek safer bets in the United States, putting pressure on emerging-market assets.

Market watchers expect U.S. nonfarm payroll numbers due on Friday to show the world's largest economy remains in good health.

"Obviously, the U.S. jobs report on Friday and even the ECB decision (on stimulus measures) on Thursday are events to look at," said Bart Stemmet, an analyst at NKC Independent Economists. "The rand should hold above 11.000 for the time being."

The rand tumbled to a two-week low of 11.0750 in the previous session after China reported factory activity unexpectedly fell to a five-month low in October, hurting the currencies of importers to the giant Asian economy.

Locally, HSBC releases its October Purchasing Manager's Index (PMI) survey on business activity on Wednesday at 0915 GMT. South African business activity expanded at its fastest rate in 21 months in September as new factory orders rose.

Yields on governments bonds were unchanged after edging lower at an auction earlier in the day, with the benchmark 2026 issue at 7.945 percent.

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