Updates prices, adds stocks
JOHANNESBURG, Sept 10 (Reuters) – South Africa’s rand weakened on Thursday as data showing contractions in mining and manufacturing in July pointed to a slow recovery in the domestic economy.
At 1540 GMT the rand ZAR=D3 was 1.59% weaker at 16.8800 per dollar.
Statistics South Africa agency figures showed on Thursday that mining output fell 9.1% in July while manufacturing was down 10.6%.
On the other hand, the central bank said that the current account balance swung to a deficit in the second quarter as the trade surplus more than halved due to the impact of the COVID-19 pandemic.
“South Africa’s weakening economic fundamentals have dragged down the rand,” Investec economist Annabel Bishop said in a research note.
“Concerns over the future of domestic economic growth are also limiting the rand from gaining fully from positive global financial market sentiment.”
Data on Tuesday showed that