Greenback Trades Near 3-week High Versus South African Rand

The dollar, which closed yesterday's New York session at 7.6713 against the South African rand, soared to a 3-week high of 7.7840 in early New York morning trading on Thursday. Thereafter, the greenback-rand pair slightly reversed its direction and currently trading at 7.7449.

South Africa's manufacturing sector contracted for the first time since October last year after reaching a peak in February this year, survey data released by Kagiso Group revealed Thursday.

The seasonally adjusted Kagiso purchasing managers' index, or PMI, declined to 48.4 in June from 51.1 in May. The PMI has now declined for the fourth consecutive month. A PMI reading above 50 suggests expansion, while below 50 indicates contraction.

According to the research group, the weakness in June was widespread among the most important sub-components. Business activity index shed 3.8 points to well below 50 at 45.2. Moreover, reduced working hours related to the FIFA World Cup explain some of the decline.