Advertise with

Production data lifts rand to week high
Production data lifts rand to week high

Production data lifts rand to week high


Fin24/ Reuters - Dec 11th, 09:25

Johannesburg - The rand gained to its strongest in nearly a week on Tuesday after upbeat mining and manufacturing data improved economic growth prospects. 

Mining data showed production surged 22% year-on-year in October, from 0.6% the previous month. Manufacturing rose 1.5% from a 3.3% contraction, and against market expectations for a further fall in October.

The data took the rand to R10.2725/$, breaking through resistance and gaining over 1%.

"On these two numbers the SARB can continue to focus on inflation when making policy decisions, and thus a rate hike would still seem more likely over the next year than a further cut," said Christopher Shiells of Informa Global Markets after the data.

The central bank has kept interest rates on hold at 5% all year as it tries to juggle a weak economy with rising prices.

By 15:18 GMT, the rand was up half a percent on the dollar to R10.3395/$, off a R10.3935/$ close in New York on Monday.

South Africa's currency was the biggest gainer in a basket of emerging market currencies trading against the dollar and tracked by Reuters on Tuesday.

The production data improves South Africa's GDP outlook for the year as manufacturing accounts for about 15% of economic activity.

Yields on government bonds ended steady at 8.275% on the benchmark 2026 issue and dropped one basis point to 6.18% on the 2015 note. 

Related News

Liquor plant shut down in Kenya
19/12/2013 - 10:51
A liquor factory that produces second generation brews has been closed down at Kabati estate in Naivasha.

South Africa's GDP up 0.7% in Q3
17/12/2013 - 08:28
South Africa's real gross domestic product (GDP) grew by 0.7 percent during the third quarter of 2013, Statistics SA (Stats SA) said on Tuesday.

PPI slows down
17/12/2013 - 07:51
Johannesburg - The year-on-year producer price index (PPI) slowed to 5.8% last month, compared to 6.3% in October, Statistics SA (Stats SA) has said.

Namibia's Inflation in 2014 seen at 6,5% after rebasing
05/12/2013 - 09:41
SIMONIS Storm Securities expect inflation to hover above 6,5% next year based on a lower base this year but additionally based on the price movements in key categories.

South African economic growth “held back”
04/12/2013 - 08:46
The growth of the South African economy was held back and activity slowed in the third quarter of 2013, the SA Reserve Bank said on Tuesday.