TMS: Rand weaker as investors turn their backs on emerging markets
The rand was weaker on Friday morning as weak factory growth in China soured investor sentiment towards emerging markets.
At 8.23am‚ the rand was at R12.9840 against the dollar from a previous close of R12.9368.
Against the euro the rand was at R14.6490 from a previous close of R14.5426. Against the pound‚ the rand was at R20.3915 from R20.2982.
The euro was at $1.1282 from $1.1241 previously.
In Asia‚ an early gauge of China’s factory activity fell to a six-and-a-half year low in August despite China’s efforts to reinvigorate the economy‚ Dow Jones Newswires reported.
The reading suggested Beijing may need to do more to reach its goal of 7% economic growth for the year.
"Now they need to double down on stimulus as economic activity in the third quarter could fall below that annual pace‚" said ING analyst Tim Condon.
The preliminary Caixin China manufacturing purchasing managers index‚ a gauge of nationwide manufacturing activity‚ fell to 47.1 in August from a final reading of 47.8 in July. A figure under 50 indicates contraction in the sector.
In Greece‚ Prime Minister Alexis Tsipras resigned on Thursday in a bid to trigger snap elections and return to power stronger. A vote is expected on September 20.
