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South Africa rand falls after poor data, stocks rise

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

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