Key Moments
- The South African rand traded at 16.32 per dollar at 1524 GMT, up about 0.6% from its previous close.
- Gold, a key South African export, rose by more than 1% while the U.S. dollar slipped 0.1% against a currency basket.
- South Africa’s manufacturing output fell 4.3% year-on-year in May after a 2.9% year-on-year decline in April.
Rand Firms on Commodity Support
The South African rand strengthened on Thursday, gaining ground alongside a rise in gold prices despite fresh data showing a deeper contraction in domestic manufacturing activity.
By 1524 GMT, the rand was trading at 16.32 against the U.S. dollar, reflecting an appreciation of about 0.6% compared with its previous close.
Commodity and Currency Moves
Gold prices, an important driver for South Africa’s export revenues, climbed by more than 1%. At the same time, the U.S. dollar edged 0.1% lower against a basket of major currencies, offering additional support to the rand.
| Market Indicator | Move |
|---|---|
| ZAR/USD exchange rate | 16.32 at 1524 GMT, about 0.6% stronger vs prior close |
| Gold prices | Up more than 1% |
| U.S. dollar index | Down 0.1% |
Manufacturing Output Declines Sharply
New figures from the national statistics agency showed that South Africa’s manufacturing sector contracted more than expected. Manufacturing output fell 4.3% year-on-year in May, following a 2.9% year-on-year decline in April.
| Month | Manufacturing Output (Year-on-Year) |
|---|---|
| April | -2.9% |
| May | -4.3% |
Equity Market Performance
Equities in Johannesburg finished higher, supported by strength in resource names. The Top-40 index on the Johannesburg Stock Exchange closed up 1.1%, with mining stocks helping to drive the advance.
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