JOHANNESBURG, May 2 (Reuters) – The South African rand firmed in early trade on Friday, ahead of the release of a purchasing managers’ index (PMI) survey for the local manufacturing sector.
At 0633 GMT, the rand was trading at 18.4375 against the dollar ZAR=D3, up roughly 0.5% on Thursday’s closing level.
The dollar index =USD was down about 0.3% on global markets, as investors awaited the U.S. non-farm payrolls report for an indication of when the Federal Reserve will resume cutting interest rates.
Rand traders are looking to South Africa’s April manufacturing PMI due for release around 0900 GMT to shed light on business conditions in Africa’s most industrialised economy.
The PMI has been in contractionary territory for the past five months, weighed down by strained South Africa-U.S. relations, power cuts and logistics bottlenecks.
April vehicle sales ZAVEHY=ECI figures are also expected around 1200 GMT.
South Africa’s benchmark 2030 government bond ZAR2030= was marginally stronger in early deals, with the yield down 2.5 basis points at 8.795%.
(Reporting by Sfundo Parakozov; Editing by Alexander Winning and Emelia Sithole-Matarise)
