Johannesburg - The rand was a touch firmer against the US dollar early on Tuesday as global oil prices continued to fall, helping the local currency fend off disappointing manufacturing data.
The rand edged 0.09% firmer to R11.5145 vs the dollar at 08:35.
The unit faced weaker demand after manufacturing output for November contracted 1.3% year-on-year, with all major sectors contracting on a month-on-month basis.
READ: November manufacturing slips
But this disappointment was offset by a drop in global oil prices. Brent crude fell to six-year lows after Goldman Sachs cut its average 2015 forecast to $50.40 a barrel from $83.75.
"Yesterday’s local manufacturing data came in much worse than expected – so much for improvement off a really low base," analyst Warrick Butler of Standard Bank said in market note.
READ: Brent ends below $50 for first time since 2009
"[But] as long as oil keeps grinding lower, the risk to local inflation remains subdued so there is no real reason for the rand to take a beating just yet."
Local bonds continued a 2015 rally, with the yield on the benchmark government issue shedding 2.5 basis to 7.56% after touching 19-month lows in the previous session.
The rand edged 0.09% firmer to R11.5145 vs the dollar at 08:35.
The unit faced weaker demand after manufacturing output for November contracted 1.3% year-on-year, with all major sectors contracting on a month-on-month basis.
READ: November manufacturing slips
But this disappointment was offset by a drop in global oil prices. Brent crude fell to six-year lows after Goldman Sachs cut its average 2015 forecast to $50.40 a barrel from $83.75.
"Yesterday’s local manufacturing data came in much worse than expected – so much for improvement off a really low base," analyst Warrick Butler of Standard Bank said in market note.
READ: Brent ends below $50 for first time since 2009
"[But] as long as oil keeps grinding lower, the risk to local inflation remains subdued so there is no real reason for the rand to take a beating just yet."
Local bonds continued a 2015 rally, with the yield on the benchmark government issue shedding 2.5 basis to 7.56% after touching 19-month lows in the previous session.