JOHANNESBURG (Reuters) -The South African rand gained on Tuesday as the dollar faltered in global markets amid hopes of a potential easing of strict COVID restrictions in China after protests in the world’s second-biggest economy.
At 1526 GMT, the rand traded at 16.9750 against the dollar, about 1.19% stronger than its closing level on Monday. The dollar was down around 0.14% against a basket of currencies.
On the domestic economic front, data from Statistics South Africa showed South Africa’s official unemployment rate fell slightly to 32.9% in the third quarter from 33.9% in the second quarter.
Analysts expect it to remain elevated as economic growth is so sluggish.
“The unemployment rate remains elevated, evincing the fragility of the South African economy which is plagued by ongoing rotational load shedding (power cuts) … weighing heavily on confidence and investment,” Investec analyst Lara Hodes said in a research note.
Central bank data on Tuesday showed a 9.34% year-on-year expansion in private sector credit in October, slightly smaller than the previous month’s 9.74% growth.
Shares on the Johannesburg Stock Exchange fell marginally, with the Top-40 index down 0.27%, while the broader all-share index closed 0.33% lower.
The South African government’s benchmark 2030 bond was stronger, with the yield down 4.5 basis points to 10.230%.
(Reporting by Alexander Winning and Bhargav Acharya; Editing by Janane Venkatraman and Alison Williams)
