JOHANNESBURG (Reuters) -The South African rand weakened on Tuesday after local mining production figures disappointed, and as U.S. inflation data pushed the dollar to a three-month peak.
At 1512 GMT, the rand traded at 19.1000 against the U.S. dollar, about 1% weaker than its previous close.
The dollar was up about 0.68% against a basket of global currencies.
South Africa’s total mining output rose 0.6% year on year in December, far below the 4.9% expected by economists polled by Reuters, Statistics South Africa data showed. Total output rose by a revised 6.9% in November.
“Domestic challenges continue to impede South Africa’s production and export potential,” said Investec economist Laura Hodes, adding that “congestion at the ports has had a significant bearing on the sector.”
U.S. inflation rose more than expected in January, reinforcing expectations that the Federal Reserve will hold interest rates in March and causing the dollar to jump.
On the Johannesburg Stock Exchange, the Top-40 index closed 1.06% lower. The benchmark 2030 government bond was weaker, with the yield up 5.5 basis points to 10.100%.
(Reporting by Alexander Winning and Nellie Peyton; Editing by Andrew Heavens)
