Johannesburg - The rand was a touch firmer against the U.S. dollar early on Tuesday as global oil prices continued to fall, helping the local currency fend off disappointing manufacturing data.
The rand edged 0.09 percent firmer to 11.5145 vs the greenback at 0635 GMT.
The rand faced weaker demand after manufacturing output for November contracted 1.3 percent year-on-year, with all major sectors contracting on a month-on-month basis.
But this disappointment was offset by a drop in global oil prices. Brent crude fell to six-year lows after Goldman Sachs cut its average 2015 forecast to $50.40 a barrel from $83.75.
“Yesterday's local manufacturing data came in much worse than expected - so much for improvement off a really low base,” analyst Warrick Butler of Standard Bank said in market note.
“As long as oil keeps grinding lower, the risk to local inflation remains subdued so there is no real reason for the rand to take a beating just yet.”
Local bonds continued a 2015 rally, with the yield on the benchmark government issue shedding 2.5 basis to 7.56 percent after touching 19-month lows in the previous session. - Reuters