South African Rand weakens ahead of economic indicator

19th December 2023 By: Reuters

South African Rand weakens ahead of economic indicator

Photo by: Reuters

South Africa's Rand was slightly weaker in early trade on December 19, ahead of a leading business cycle indicator release that is likely to provide clues about the economic health.

At 08.18, the Rand traded at 18.5975 against the US Dollar, about 0.1% weaker than its previous close.

The dollar index was last trading up 0.07% at 102.560.

South Africa's composite leading business cycle indicator for October was released at 09.00.

The indicator collects data on vehicle sales, business confidence, money supply and other factors to gauge the outlook for Africa's most industrialised economy.

It is expected to show improvement on a monthly basis but still reflect a year-on-year contraction, confirming that South Africa remains in an economic downturn, said analysts at ETM Analytics.

South Africa's benchmark 2030 government bond was weaker in early deals, with the yield up 6.5 basis points at 9.715%.