Rand weakens ahead of economic indicator

The rand was slightly weaker in early trade on Tuesday, ahead of a leading business cycle indicator release that is likely to provide clues about the economic health.

At 0618 GMT, the rand traded at R18.59 against the dollar.

The dollar index was last trading up 0.07% at 102.560.

South Africa’s composite leading business cycle indicator for October will be released at 0700 GMT.

The indicator collects data on vehicle sales, business confidence, money supply and other factors to gauge the outlook for Africa’s most industrialised economy.

It is expected to show improvement on a monthly basis but still reflect a year-on-year contraction, confirming that South Africa remains in an economic downturn, said analysts at ETM Analytics.

South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 6.5 basis points at 9.715%.