JOHANNESBURG (Reuters) -The South African rand edged higher in early trade on Monday, ahead of the release of a local manufacturing purchasing managers’ index (PMI) survey and vehicle sales numbers for the month of October.
At 0559 GMT, the rand traded at 17.2950 against the dollar, roughly up 0.2% on Friday’s close.
The Absa PMI print is set to be released at 0900 GMT and will shed light on manufacturing conditions in Africa’s most industrialised economy.
“We expect the index to have remained in expansionary territory (above 50) but eased modestly to around 51.0 from 52.2 previously,” Investec economist Lara Hodes said in a note.
Hodes added that the slip was due to lacklustre domestic activity as structural issues persist.
“Globally, tariffs have had less of an effect than previously projected at this point, supported in part by the frontloading of inventory, however downside risks remain.”
Local investors will later turn their focus to vehicle sales data, due around 1200 GMT, which will give a snapshot of consumer demand for big-ticket items.
Nedbank economists, in a research note, said they expect vehicle sales to have remained strong in October with momentum “underpinned by easier financial conditions due to interest rate cuts, lower debt service costs and subdued prices.”
In fixed income, government bonds were little moved in early deals, as the yield for debt maturing in 2035 fell only half a basis point to 8.86%.
(Reporting by Sfundo Parakozov; Editing by Sherry Jacob-Phillips)
