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Johannesburg - The rand steadied against the dollar on Wednesday after a bout of weakness overnight following disappointing factory data that reinforced a gloomy economic outlook and the likelihood of continued pressure on the currency.
The local currency was at R9.2325 versus the greenback at 08:59, a 0.22% gain from Tuesday's close at R9.2530.
The rand retreated from two-week highs on Tuesday, weighed down by a report showing the purchasing managers' index, a forward-looking pointer to manufacturing activity in the economy, fell into contraction territory in March.
The data is the latest sign of an economy struggling to return to the 5% growth levels enjoyed before a 2009 recession.
"South Africa is still plagued by a number of ... risks, such as relatively weak economic growth and there are still no obvious catalysts for sustained rand short-covering," Absa Capital said in a note.
"A firmer dollar environment, combined with softer commodity prices, has contributed to the latest bout of weakness, but the rand remains on the back foot in its own right."
Government bonds were a touch firmer on Wednesday and yields inversely edged higher.
The yield for the 2026 paper was down half a basis point at 7.375% while the 2015 issue dipped by one basis point to 5.49%.
