South African rand gains as China data boosts risk-taking

The South African rand gained in early trade on Wednesday after China’s manufacturing activity expanded at its fastest pace since April 2012, fuelling risk-on appetite globally.

At 0522 GMT, the rand traded at 18.2900 against the dollar, more than 0.3% stronger than its previous close.

China is South Africa’s largest trading partner, so positive news about the health of its economy tends to lift South African asset prices.

The safe-haven U.S. dollar edged lower on the revival of activity in China.

South Africa’s benchmark 2030 bond slipped in early deals, with the yield rising 4.5 basis points to 10.110%.