Cape Town - The rand strengthened the most among emerging-market currencies as evidence of a pickup in global manufacturing boosts South Africa’s export prospects.
In the US, the Institute for Supply Management will probably say factory output expanded a third month after gauges from the UK to China showed manufacturing is reviving.
South Africa’s purchasing managers’ index rose, a report showed yesterday, signaling an expansion in manufacturing growth as the weaker rand makes exports more attractive.
“It really seems that the global economy is picking up steam,” John Cairns, a currency strategist at Rand Merchant Bank in Johannesburg, said in e-mailed comments.
“That South Africa’s PMI actually jumped shows how the country has avoided being caught up in the emerging-market problems.”
South Africa’s currency appreciated 0.3 percent to 10.2518 per dollar as of 8:47 a.m. in Johannesburg, the biggest gain today among emerging-market currencies monitored by Bloomberg.
Yields on benchmark 10.5 percent bonds due December 2026 rose five basis points, or 0.05 percentage point, to 8.50 percent, increasing for the first time in three days. - Bloomberg News