The rand held its ground on Wednesday as new business-conditions data offered few surprises and global markets waited for key United States releases ahead of next week’s Federal Reserve decision, Reuters reported.
By 1203 GMT the rand was trading at 17.0750 to the dollar, roughly 0.2 percent firmer than Tuesday’s close. S&P’s Global survey showed that private-sector activity contracted for a second month in November, with the PMI inching up to 49.0 from 48.8 but still stuck below the 50 level that signals growth. Companies faced the sharpest rise in input costs in more than a year and lifted output prices at the fastest pace since February.
The latest numbers add to a week of generally weaker data at home, including softer third-quarter growth, a disappointing manufacturing print, weaker-than-expected vehicle sales and another rise in fuel prices for December. Attention now shifts to Thursday’s current-account figures and Friday’s foreign-reserves update.
On the Johannesburg Stock Exchange, the Top-40 index edged up 0.1 percent. The benchmark 2035 government bond strengthened, with the yield dropping 11.5 basis points to 8.315 percent.
In more positive news, business confidence improved by five points in the fourth quarter to 44, according to a Rand Merchant Bank survey compiled by the Bureau of Economic Research. Most sectors reported better sentiment, although confidence among building contractors slipped. RMB cautioned that the recovery remains fragile and will require steady policy progress and firmer demand to take hold.
Despite the mixed backdrop, the rand has shown resilience, helped by investor optimism and strong bullion prices that typically benefit South Africa’s mining-heavy economy.
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