South African rand weakens on weak PMI and firm dollar
The South African rand declined as a manufacturing survey revealed worsening business sentiment in August. Meanwhile, a stronger US dollar pressured emerging market assets amid renewed geopolitical tensions.
Insights:
South Africa's rand fell 0.2% to 16.1375 per dollar during Tuesday midday trading after a manufacturing survey showed factory sentiment hitting a yearly low. The currency retreat coincided with a broader greenback rally driven by geopolitical tensions in the Middle East. Investors are recalibrating currency exposure as domestic economic momentum softens against a backdrop of rising global inflation concerns.
