Rand weakens on Chinese PMI‚ emerging-market stresses

Fifi Peters

RENEWED pressure on emerging-market currencies sent the rand to a one-week low against the dollar in midday trade on Thursday.

At 12.07pm‚ the rand was at R11.0609 to the dollar from Wednesday’s close of R11.0369. The local unit weakened as far as R11.10/$‚ after disappointing manufacturing data out of China‚ South Africa’s largest export region‚ knocked investor sentiment.

The Chinese manufacturing purchasing managers index (PMI) fell to 48.3 points for February‚ the lowest level in seven months‚ sparking concern about growth prospects in China.

Further pressure on the rand arose from political instability in the Ukraine and Thailand‚ which added to emerging-market currency woes.

Against the euro‚ the rand was at R15.1550 from its previous close of R15.1550 and was at R18.4124 to the pound from R18.4036 on Wednesday.

The euro weakened to $1.3700 from $1.3728 at Wednesday’s close‚ after manufacturing data in the region also fell short of expectations.

Official data showed the eurozone composite PMI came in at 52.7 in February from 52.9 last month. Consensus had expected PMI to rise to 53. © BDlive 2014