The South African rand strengthened slightly on Thursday as investors awaited key domestic data releases, including the manufacturing Purchasing Managers’ Index (PMI) and new vehicle sales figures, both expected to offer fresh insights into the country’s economic momentum.
As reported by Bloomberg and Reuters, the rand traded around 17.86 to the dollar in early morning deals, recovering modestly from earlier losses. Market analysts attributed the movement to investor positioning ahead of the economic data and ongoing shifts in global risk sentiment.
Traders are watching closely to see whether the manufacturing PMI will remain above the 50-point threshold that signals expansion, while car sales figures will serve as a gauge of consumer demand and overall business confidence.
According to Business Day, economists expect modest improvement across both indicators, with sentiment supported by easing power outages and a steadying inflation outlook. However, analysts warn that global uncertainties and domestic fiscal risks could limit the rand’s near-term gains.
