JOHANNESBURG (Reuters) – South Africa’s rand slipped on Tuesday, with market attention this week likely to hinge on a local purchasing managers’ index (PMI) survey and a U.S. Federal Reserve interest rate meeting.
At 1525 GMT, the rand traded at 18.4925 against the dollar, around 0.56% weaker than its previous close.
The U.S. currency was last down about 0.12% against a basket of currencies.
PMI surveys for the manufacturing sector and whole economy give investors further insight into the health of Africa’s most industrialised economy.
South African manufacturing activity contracted again in April but less than in February and March, helped by companies building up inventories, a survey showed on Tuesday.
Investors will now turn their focus to an S&P Global PMI survey due on Thursday.
Meanwhile, the Fed is expected to deliver another 25 basis point rate hike on Wednesday.
Investors will focus on whether the U.S. central bank indicates that it expects to pause rate increases after May, or if it keeps alive the possibility of another hike in June or later.
Shares on the Johannesburg Stock Exchange fell, with the broader-all share index closing down 0.88% and the blue-chip Top-40 index ending 0.96% lower.
South Africa’s benchmark 2030 government bond was slightly weaker, with the yield down 1.5 basis points to 10.195%.
(Reporting by Tannur Anders and Bhargav Acharya; Editing by Alexander Winning)
