* Rand loses the most amongst its peers
* Falls 1.2 pct on local output data, weak euro
JOHANNESBURG Nov 8 (Reuters) – The rand fell over one
percent against the dollar after weaker-than-expected mining and
manufacturing data on Thursday painted a bleak growth picture
for Africa’s largest economy.
South Africa’s currency extended the losses in late
afternoon trade as the euro sank after downbeat European Central
Bank comments on the euro zone economy.
September data released earlier in the session showed South
African manufacturing output contracted 1.1 percent, against
expectations for a 0.5 percent fall, and compared to a 2.8
percent expansion in August.
Strikes that began in the mining sector in August were
largely to blame, with mining output down 8.3 percent in
September, its weakest performance in 5 months.
The rand was down 1.2 percent at 8.7455 against the
dollar in late afternoon trade, making it the day’s biggest
loser in a basket of emerging market currencies trading against
the dollar and tracked by Reuters. It had managed a 8.6336 close
in New York on Wednesday.
“The external environment is broadly risk-off, but the rand
has underperformed its EMEA peers and this can only be due to
the disappointing mining and manufacturing output releases,”
said Christopher Shiells, emerging market analyst for Informa
Global Markets.
Thursday’s move shifted the rand back into its three-week
range, with dealers saying they were bracing for the next bad
news that would push the currency out of the range towards
weaker levels.
Continued…
