South African rand softens ahead of presidential address and economic data
The South African rand softened in early trade on Thursday as investors awaited statistics agency data and President Cyril Ramaphosa's annual State of the Nation address to gain a clearer picture on the country's economic and political outlook.
At 0717 GMT the rand traded at 15.8950 against the dollar, down about 0.2% from Wednesday's close, while the dollar strengthened slightly against a basket of currencies.
Ramaphosa's second State of the Nation speech since his coalition government formed in June 2024 is due at 1700 GMT.
ETM Analytics said that while the government has much to celebrate, including improvements to the country's fiscal position, a credit rating upgrade and smooth shift to a lower inflation target, a mounting water crisis remains the most urgent challenge.
Parts of Johannesburg have endured water outages for more than three weeks while experts warn of a looming drought in the Western Cape.
South Africa's statistics agency will publish December mining data at 0930 GMT and manufacturing figures at 1100 GMT.
On the Johannesburg Stock Exchange, the Top-40 index was little changed in early trade.
South Africa's benchmark 2035 government bond strengthened, with the yield falling by 2.5 basis points to 7.93%.
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