The South African Rand has edged higher against the Pound and has made slight gains against the US Dollar after South Africa’s purchasing managers index rose to a four-month high.
According to Kagiso Tiso Holdings, South Africa’s latest PMI data rose to a four-month high in June signalling a rebound in the nation’s manufacturing sector. The seasonally adjusted data increased to 51.6 in June, up from 50.4 in May. A number above 50 means growth in factory output.
Manufacturing is a huge part of the South African economy, making up around 15% of GDP.
“While the latest PMI results show that conditions improved marginally, the outlook for the sector is expected to remain challenging in an environment of muted demand and relatively high input prices,” said the head of research at Kagiso.
The data is welcome news to an economy that has been battered by mining strikes, worker unrest, civil disobedience and the impact of the investor rout from emerging market economies. Africa’s largest economy grew by 0.9% in the first quart of 2013, its slowest expansion since the 2009 recession.
Against the US Dollar the Rand managed to edge away from the important R10 level as investor concerns eased over the possibility of an early withdrawal of US stimulus measures.
“Dollar/Rand is pushing at the key R9.83/85 support level. A break would open up scope for a proper rand recovery but if the level holds, we could be trapped in a range for a while,” said Rand Merchant Bank in a note to clients. “Assuming no major data surprises, it looks as if tapering will start in September.
‘For us, the key issue is whether foreign investors will return to emerging markets. Initial signs are positive,” the bank said.
Current South African Rand (ZAR) Exchange Rates
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.8945 <
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.0602 <
The Euro/South African Rand Exchange Rate is currently in the region of: 12.9034 <
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.0722 <
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.6733 <
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.4049 <
(Correct as of 12:10 pm GMT)
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