South African rand weakens as manufacturing sentiment falls

Investing.com -- The South African rand declined on Tuesday following the release of a purchasing managers’ index survey showing manufacturing sentiment worsened in August as business activity fell. The rand traded at 16.1375 against the dollar, down about 0.2% from its previous close, as of 1259 GMT. The seasonally adjusted PMI sponsored by South African bank Absa dropped to 45.8 in August from 46.8 in July, marking its fourth consecutive monthly decline and the lowest reading so far in 2026. Data from South Africa’s automotive industry body NAAMSA showed new vehicle sales rose 11.4% year-on-year in August, slowing from 11.9% growth in July. The U.S. dollar index was firmer against a basket of currencies as renewed U.S.-Iran hostilities fuelled inflation worries. On the Johannesburg Stock Exchange, the Top-40 index was last down 0.8%. This article was generated with the support of AI and reviewed by an editor.