(Reuters) – The South African rand slipped in early trade on Wednesday, pressured by global risk aversion tied to fading prospects of a permanent U.S.-Iran peace deal, while traders awaited a local manufacturing purchasing managers’ index and vehicle sales data for June.
The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here.
At 0709 GMT the rand traded at 16.44 against the dollar , about 0.4% weaker than its previous close.
An Absa PMI survey is set to be released at 0900 GMT and will shed light on manufacturing conditions in Africa’s most industrialised economy.
The nation’s factory sentiment eased in May as activity and demand slowed, though it remained in expansionary territory for a second consecutive month.
Investors will then turn their focus to vehicle sales (ZAVEHY=ECI), opens new tab data due around 1200 GMT, which will give a snapshot of consumer demand for big-ticket items. Car sales rose 12.8% in May.
On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI), opens new tab was down 1% in early trade.
South Africa’s benchmark 2035 government bond also weakened, with the yield rising 6 basis points to 8.355%.
Reporting by Sfundo Parakozov; Editing by Shri Navaratnam
Our Standards: The Thomson Reuters Trust Principles.