South African Rand Weakens as Factory Sentiment Eases
The rand fell 0.6% to 16.3151 per dollar as factory activity slowed in May. Rising oil prices and Middle East tensions further weighed on investor sentiment.
The South African Rand fell 0.6% to 16.3151 against the dollar on Monday midday after factory sentiment eased. Manufacturing activity cooled in May even as the sector remained in expansionary territory for a second consecutive month. Surging oil prices and Middle East geopolitical tensions continue to pressure the rand and broader risk appetite.
### Manufacturing Momentum Faces Headwinds South Africa's factory purchasing managers index eased in May as the boost from front-loaded orders in April dissipated. ABSA GROUP LTD noted that while manufacturers had anticipated further cost increases in April, this effect faded the following month.
