Rand weakens as production falls

The rand was a few cents weaker against the dollar yesterday afternoon‚ after manufacturing figures showed output in the South African economy’s fourth-largest sector declined by more than expected in November.

At 4pm, the rand was at R11.52 against the dollar‚ reversing its earlier day gains which saw the currency firm as far as R11.45/$‚ its best level seen since mid-December. The rand closed at R11.48/$ on Friday.

Against the euro‚ the rand was slightly firmer‚ trading at R13.61 from R13.63‚ but slipped slightly against the pound‚ fetching R17.45 from Friday’s close of R17.44.

Manufacturing production fell by 1.3% in November compared with November 2013 after increasing by 2.3% year on year in October‚ Statistics SA figures showed.

On a month-on-month basis, manufacturing shrunk by 2.1%.

The decrease was mainly due to a shrink in the production of motor vehicles‚ parts and accessories and other transport equipment, food and beverages and glass and nonmetallic mineral products.

– BDlive

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