JOHANNESBURG (Reuters) -The South African rand softened in early trade on Tuesday, ahead of the release of unemployment and manufacturing data later in the day and a national budget review on Wednesday.
At 0652 GMT the rand traded at 17.16 against the dollar, roughly down 0.2% from its previous close.
The local currency staged a recovery on Monday, gaining about 1% after news that the U.S. Senate had passed a deal that would restore federal funding and end the longest shutdown.
Domestic investors will look to unemployment data for the third quarter of 2025 at 0930 GMT to gauge the labour market of Africa's most industrialised economy.
Nedbank economists said in a research note they expect a decrease in employment from export-oriented industries which are likely on wait-and-see mode as they assess the impact of U.S. tariffs and subdued global demand.
The country's official jobless rate currently stands at 33.2%, one of the highest rates worldwide.
The statistics agency will also publish manufacturing output at 1100 GMT, in which analysts polled by Reuters estimate a 0.3% decline for the month of September. But Nedbank economists forecasted a 0.7% increase, reversing the 1.5% contraction recorded in August.
"While the sector continues to face structural and cost pressures, output is expected to receive some support from consumer-oriented manufacturing sectors, which are benefiting from firmer domestic demand and improved electricity supply and logistics performance."
Investor attention will quickly pivot to the national budget presentation by Finance Minister Enoch Godongwana on Wednesday.
South Africa's benchmark 2035 government bond was stronger in early deals, as the yield fell one basis point to 8.74%.
(Reporting by Sfundo Parakozov;Editing by Andrew Heavens)
