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JOHANNESBURG, June 5 (Reuters) – The South African rand was little changed in early trade on Monday ahead of an economic survey that could shed light on the business conditions in Africa’s most industrialised economy.
At 0609 GMT, the rand traded at 19.5250 against the dollar , near its previous close of 19.5150.
The dollar was last trading around 0.04% stronger – at 104.190 – against a basket of global currencies.
The rand has made some recovery since hitting an all-time low last week when the South African currency traded at 19.9075 to the greenback.
The rand slumped after investor sentiment soured on the back of the worst rolling blackouts on record and allegations by the U.S. that South Africa had supplied arms to Russia late last year.
“(South Africa’s) geo-diplomatic risk has peaked, and foreign investors are starting to dip their toes back into (South Africa), but a strong dollar reduces scope for rand gains,” said Rand Merchant Bank analysts in a research note.
The May S&P Global South Africa Purchasing Managers Index (PMI) is due to be published at 0715 GMT.
Investors will turn their attention on Tuesday to Statistics South Africa for the country’s first quarter gross domestic product (GDP) figures.
“It’s a very light week for the markets. Locally our focus will be on the (quarter one) GDP print where we will get a fuller picture of the damage from loadshedding,” added RMB analysts referring to the country’s power cuts.
JP Morgan in May predicted a 0.2% decline in the country’s 2023 GDP.
South Africa’s benchmark 2030 government bond was marginally stronger in early deals, with the yield down 1 basis point to 11.240%. (Reporting by Tannur Anders; Editing by Bhargav Acharya and Gareth Jones)
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