South African rand supported by weaker dollar as mining output disappoints

By Reuters News

JOHANNESBURG, Oct 13 (Reuters) - The South African rand held on to early gains on Tuesday, supported by a softer dollar and lower oil prices, shrugging off weaker-than-expected domestic mining data.

  • At 1319 GMT, the rand traded at 16.5050 against the dollar , about 0.2% firmer than its previous close and little changed from morning levels.

  • South Africa's mining output fell 12.7% year on year in August compared with a revised decrease of 7.0% in July, Statistics South Africa data showed on Tuesday.

  • Economists polled by Reuters had forecast a 3.7% contraction.

  • The dollar index was down, lending support to the rand, while oil prices fell as traders assessed supply risks following attacks on Saudi Arabia and weighed the prospect of additional diesel supplies from Russia.

  • Investors are also focused on Wednesday's US Consumer Price Index report, one of the last major data releases before the Federal Reserve's late-October policy meeting.

  • Like other risk-sensitive currencies, the rand often takes its cues from global factors, particularly US monetary policy, alongside domestic economic data.

  • On the Johannesburg Stock Exchange, the Top-40 index .JTOPI was last up 0.9%.

  • South Africa's benchmark 2035 government bond also strengthened, as the yield fell 6 basis points to 8.755%.

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