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South Africa's rand falls on firm dollar, weak data
JOHANNESBURG, April 11 (Reuters) - South Africa's rand
weakened on Thursday as the U.S. dollar firmed and weak domestic
mining and manufacturing data pointed to soft economic growth at
the start of the year.
Stocks declined, led by gold miners, as the price of the
yellow metal dropped.
At 1502 GMT the rand had weakened by 0.5 percent to
13.9925 per dollar.
The dollar index, which measures the currency against
a basket of six others, rose on Thursday after reports that U.S.
March producer prices had posted the biggest rise in five
months, and after weekly jobless claims fell to the lowest since
Locally, data from Statistics South Africa showed that
mining output was down 7.5 percent year-on-year in February,
while manufacturing production barely grew, rising by 0.6
"The latest activity figures add to the evidence that growth
in South Africa softened at the start of 2019. Conditions will
probably pick up later in the year, but growth will remain
tepid," said John Ashbourne, senior emerging markets economist
at Capital Economics.
In fixed income, the yield on the benchmark government bond
due in 2026 added 3.5 basis points for 8.49 percent.
On the bourse, the broader All-Share index fell
0.39 percent to 58,186, while the blue-chip Top-40 index
declined 0.42 percent to 51,942.
Gold stocks fell 2.97 percent with AngloGold
Ashanti shedding 3.5 percent to 184.92 rand and rival
Gold Fields slipping 3.18 percent to 53.30 rand.
(Reporting by Olivia Kumwenda-Mtambo and Onke Ngcuka; Editing
by Kevin Liffey)
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