The South African rand slumped today, following three sessions of gains, as signs of slowing economic growth of South Africa diminished the attractiveness of the currency even in the current risk-positive environment.
The manufacturing Purchasing Managers’ Index declined for the third straight month in October, indicating contraction of the sector. Mining strikes led to rise of unemployment. The poor fundamentals made South African officials believe that nation’s growth will slow from 3.1 percent last year to 2.5 percent in 2012.
USD/ZAR advanced from 8.6452 to 8.6769 as of 13:32 GMT today.
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