However, Elon Musk's public criticism of the EFF and weak local economic data may also have weighed on the local currency.The rand took a big hit on Tuesday as the dollar advanced – but local factors, including jitters over the EFF, may also be weighing on the currency, analysts say.
However, the rand also weakened more than 1% against other key currencies – it was trading at R23.21/pound and R19.94/euro - perhaps reflecting local concerns as well, says Schalk Louw, a portfolio manager and strategist at PSG Wealth Old Oak. Sentiment in the local manufacturing industry fell to its weakest level since the July riots in 2021, Bloomberg reported. Absa Purchasing Managers’ Index, compiled by the Bureau for Economic Research, fell to 47.3 in July from 47.6 a month earlier."It is also the sixth consecutive month below 50 — indicating contraction in an industry that accounts for about 14% of South Africa’s gross domestic product — its most sustained downturn since 2019," Bloomberg noted.