JOHANNESBURG (Reuters) -South Africa’s rand edged up against the dollar on Wednesday after a weak U.S. purchasing managers’ index (PMI) survey, while global markets awaited the release of key U.S. data for further clues on the Federal Reserve’s interest rate trajectory.
At 1507 GMT the rand traded at 17.66 against the dollar, about 0.2% above Tuesday’s close.
South African business confidence slipped a point in the third quarter from the prior three months, weighed down by hefty U.S. tariffs on the country’s exports, a survey released on Wednesday showed.
The headline PMI stood at 50.1 for the month, slightly below 50.3 in July and marking the fourth consecutive month above the 50.0 threshold that indicates growth.
The dollar weakened about 0.3% against a basket of currencies as investors awaited the August nonfarm payrolls report due on Friday, following news on job openings on Wednesday and private payrolls on Thursday. The data will provide clues on U.S. economic strength that will influence the Fed’s decision on interest rates.
Traders will also continue assessing a court ruling that most of U.S. President Donald Trump’s tariffs are illegal, as well as his continuing tussle with the Fed over his attempt to fire Governor Lisa Cook.
On the Johannesburg Stock Exchange, the Top-40 index closed up 0.5%.
South Africa’s benchmark 2035 government bond also weakened, as the yield rose 2 basis points to 9.645%.
(Reporting by Sfundo Parakozov and Anathi Madubela;Editing by Andrew Heavens and Richard Chang)
