JOHANNESBURG, May 12 (Reuters) - The South African rand, which started Tuesday's session on the back foot, extended its losses after data showed a rise in unemployment in Africa's most industrialised economy in the first quarter of 2026.
o At 1402 GMT the rand traded at 16.5175 against the dollar, about 0.5% weaker than its previous close.
o South Africa's unemployment rate rose to 32.7%, from 31.4%, data from the statistics agency showed on Tuesday.
o The official jobless rate has been above 30% for more than five years and is among the highest in the world.
o Nedbank economists said in a research note: "The increase in the unemployment rate was driven mainly by job-shedding and insufficient job creation, compounded by potential workers giving up their search for employment."
o Nedbank added that the U.S.-Iran war had introduced new headwinds and was expected to place pressure on oil-intensive sectors through higher input costs and potentially supply disruptions.
o "The most exposed sectors include agriculture, transport, logistics, and manufacturing," said Nedbank.
o Separate data from Statistics South Africa showed manufacturing output rose 0.9% year-on-year in March, beating analysts' expectations of a 0.3% increase in a Reuters poll.
o The greenback gained 0.4% against a basket of currencies after Bureau of Labor Statistics showed a rise in U.S. consumer prices for a second straight month in April.
o On the Johannesburg Stock Exchange, Top-40 index was last down 1.4%.
o South Africa's benchmark 2035 government bond weakened as the yield rose 8.5 basis points to 8.78%.
(Reporting by Anathi Madubela and Sfundo Parakozov; Editing by Nilutpal Timsina and Alex Richardson)
