Rand weakens near 7-month low

Johannesburg - The rand weakened to near a seven-month trough against the US dollar on Thursday, tracking a weaker euro and struggling for clear direction the day after the Heritage Day national holiday.

The rand traded at R1.1700/dollar at 08:37, trading within a recent tight range. It closed at R11.1285 in New York on Wednesday, when the domestic market was closed for a holiday.

The euro, the currency of South Africa's biggest trading bloc, fell to 14-month lows after comments from European Central Bank President Mario Draghi on Wednesday that the bank will keep monetary policy accommodative.

The rand's immediate support should come in at Monday's low of R11.1890, through which the currency will be back at seven month lows.

Statistics South Africa is due to release producer price inflation data at 11:30. The data is for August and economists expect factory gate prices continued to fall after three months of easing PPI.

Yields on government bonds were flat at 8.175% on the benchmark 2026 issue.

Finance Minister Nhlanhla Nene is due to speak at the revenue service at 15:00.