Sabado, Disyembre 10, 2011

Rand extends losses vs dollar

The rand extended its losses against the dollar as weaker-than-expected manufacturing and current account data added to pressure to an already fragile rand.

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The rand extended its losses against the dollar on Thursday as weaker-than-expected manufacturing and current account data added to pressure to an already fragile rand.

The rand gave up slightly more than 1.2 percent to hit a session low of 8.11 against the dollar, compared to a 8.01 close on Wednesday.

“The slump in manufacturing production growth is negative for the GDP growth outlook and, hence, the rand's fundamentals,” said Nomvuyo Guma, macro-economic strategist at Standard Bank in a note.

“With the rand already weakening on the back of earlier data showing a wider-than-expected current account, this (manufacturing) data could aggravate the rand's weakness.” - Reuters

Source: http://www.iol.co.za/rand-extends-losses-vs-dollar-1.1195047

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