South African rand muted ahead of business activity PMI

Business Recorder reported that the South African rand barely moved in early trade on Thursday, helped by a softer US dollar. At 0618 GMT the currency changed hands at 16.04 per dollar, nearly identical to its previous close of 16.0525. Local traders were waiting for fresh private-sector PMI figures while they watched the market.

The greenback slipped 0.2% against a basket of major currencies while investors focused on US nonfarm payrolls, a release seen as a steer for the Federal Reserve's next step. Like other emerging market currencies, the rand generally tracks global forces, including American economic releases and geopolitical developments.

Local attention now moves to the S&P Global whole-economy PMI for August, due at 0715 GMT, which will offer a read on business conditions. A manufacturing PMI issued on Tuesday showed activity weakening again in August, hitting the year's lowest reading and pointing to a soft start to the second half. The 2035 government bond yield was also little changed at 8.65%.