The South African rand declined 0.2% to 16.1375 per U.S. dollar by 09:59 on Tuesday, extending losses as manufacturing sector sentiment deteriorated.
South Africa's seasonally adjusted Absa Purchasing Managers' Index fell to 45.8 in August from 46.8 in July, marking the fourth consecutive monthly decline and the lowest reading of the year. The reading remains below the 50-point threshold that separates expansion from contraction.
Automotive industry data showed new vehicle sales rose 11.4% year-on-year in August, according to NAAMSA, the South African automotive association. The increase follows a 11.9% gain in July, indicating a slight deceleration in growth.
The rand's decline coincided with a stronger U.S. dollar index, supported by renewed inflation concerns tied to escalating tensions between the U.S. and Iran. On the Johannesburg Stock Exchange, the Top-40 index fell 0.8% during the session.
