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Johannesburg - The rand was slightly softer at midday on Tuesday on lower than expected purchasing managers index (PMI) figures.
The seasonally adjusted Kagiso purchasing managers’ index (PMI) lost 4.3 points to 49.3 in March after moving above the key 50-point mark to 53.6 in February‚ data on Tuesday showed.
“We were expecting a figure around 52.8 so today’s figure was slightly weaker than expected‚” a local currency dealer said.
A PMI below 50 suggests a contraction in activity while that above 50 points to expansion.
The pullback in the Kagiso PMI was largely driven by significant declines in the new sales orders (8.2 points) and business activity indices (4.5 points).
The figure was surprising to some analysts as in February the Kagiso PMI improved for the second consecutive month and managed to breach the key 50 point level for the first time since August last year‚ rising 4.5 index points.
At 11:35 the rand was bid at R9.2081/$ from R9.1889 at the previous close. The local currency was bid at R11.8230/ from its previous close of R11.8039 and at R13.9848 against sterling from R13.9879 before.
The euro was bid at $1.2837 from $1.2846 at the previous close.
