South Africa's rand slightly firmer, pressure looms

JOHANNESBURG: The rand ended a two day losing streak on Monday, although downside risks were in focus after China, a key importer of South African commodities, released weaker than expected manufacturing data.

By 0655 GMT the rand traded at 12.0400 against the greenback, 0.12 percent stronger than its Friday close in New York.

Government debt prices fell, with the yield on the benchmark instrument maturing in 2026 adding 4.5 basis points to 8.0 percent.

Traders and analysts said the local unit was likely to turn weaker -- extending last Thursday and Friday's losses -- after data showed China's factory activity suffered the fastest drop in a year in April.

"The rand and local bonds remain under considerable pressure from the run on global bonds and the risk is for a further sell-off this week in what is likely to be volatile trade," RMB market analyst John Cairns said.