The South African (SA) Rand weakened in early trade on Monday, ahead of the release of a local manufacturing purchasing managers’ index (PMI) survey and vehicle sales numbers for November.
The Rand traded at 17.1550 against the Dollar, about 0.2% weaker than Friday’s close.
The Absa PMI data is set to be released and will shed light on manufacturing conditions in Africa’s most industrialised economy.
SA’s manufacturing sentiment deteriorated in October on subdued domestic demand and sluggish exports.
Local investors will later turn their focus to vehicle sales, for a snapshot of consumer demand for big-ticket items.
Nedbank economists, in a research note, said they expect car sales to have been strong in November with momentum “underpinned by easier financial conditions due to interest rate cuts, lower debt service costs and subdued prices”.
The note projected sales to rise to 15.7% from 8.1% in the same period last year, but softer than October’s 16%.
Meanwhile, third-quarter gross domestic product statistics is expected on Tuesday, while current account for the same period is due on Thursday and foreign reserves numbers on Friday.
–Reuters–
