Rand up as dollar dips on disappointing data

Johannesburg  - The rand strengthened against the dollar on Thursday, extending its gains into a second session as the greenback slid on weaker-than-expected manufacturing activity.

At 06:24 GMT the rand was 0.49% stronger against the dollar, its firmest in five days, trading at R11.2055 off a New York close of R11.2650.

The rand carried over its positive momentum from the previous session, strengthening after the dollar fell against major currencies as the world's largest economy reported that factory activity in September had slowed.

The rand remains vulnerable to further labour tensions after Nehawu announced demands on Wednesday for a 15% pay increase, far above inflation.

Read: Nehawu demands 15% pay hike

SA is still reeling from a six-month platinum strike earlier this year.

Earlier this month, SA Reserve Bank governor Gill Marcus reiterated her concern that recent wage demands and some settlements have not matched inflation and productivity.

Government bonds were flat in morning trade, with yields on the paper due in 2026 unmoved at 8.325%.