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South African Rand Weaker before PMI Survey, US Data

JOHANNESBURG, Sept 3 (Reuters) - South Africa's rand weakened in early trade on Wednesday ahead of the release of a purchasing managers' index survey and as global markets awaited the release of key U.S. data for further clues on the Federal Reserve's interest rate trajectory.

At 0545 GMT the rand traded at 17.7250 against the dollar , about 0.2% weaker than Tuesday's close.

Investors will look to the S&P Global August whole-economy PMI at 0715 GMT for a window on business conditions in Africa's most industrialised economy.

South African manufacturing sentiment deteriorated in August after a short-lived improvement in July, as activity remained subdued and both domestic and export demand were sluggish, a survey showed on Monday.

The dollar last traded flat against a basket of currencies, with investor focus pinned on August nonfarm payrolls report, due on Friday, preceded by private payrolls and job openings data for clarity on the labour market that has become the focus of policy debate at the Fed.

Traders will also continue assessing a court ruling that most of President Donald Trump's tariffs are illegal, as well as his continuing tussle with the Fed over his attempt to fire Governor Lisa Cook.

Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data.

South Africa's benchmark 2035 government bond also weakened in early deals, as the yield rose 2.5 basis points to 9.65%.

Reporting by Sfundo Parakozov; Editing by Andrew Heavens

Source: Reuters


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