JOHANNESBURG (Reuters) -The South African rand edged up on Friday, buoyed mainly by higher gold prices, after a purchasing managers’ index (PMI) pointed to improved private sector activity in September but highlighted a gloomy outlook for the year ahead.
The risk-sensitive currency at 1524 GMT traded at 17.23 against the dollar, roughly up 0.3% on Thursday’s close.
The dollar was flat against a basket of currencies as investors mulled the impact of the U.S. government shutdown, while gold prices firmed, boosting the appeal of major gold producer South Africa’s currency.
Business conditions in South Africa’s private sector improved for the fifth month running in September, thanks to a rise in output and new orders, a S&P Global PMI showed on Friday.
It also flagged that business expectations for the year ahead fell to their lowest level since July 2021, with concerns over economic and political uncertainty cited for dampening sentiment.
Next week’s releases will feature manufacturing production figures and gold and foreign exchange reserves data.
On the Johannesburg Stock Exchange, the Top-40 index closed up 1.6%.
In fixed income, government bonds were flat for most of Friday’s trading session, with the yield for debt maturing in 2035 at 9.185%.
(Reporting by Anathi Madubela and Sfundo Parakozov;Editing by Mark Potter, Editing by William Maclean)
