South African rand dips before second-quarter GDP data
- On global markets, the dollar was 0.2% stronger against a basket of peers as investors awaited a European Central Bank meeting and more US data to gauge the policy outlook
JOHANNESBURG: The rand slipped early on Tuesday before the release of second-quarter gross domestic product (GDP) data that will show the pace of South Africa's economic recovery from the COVID-19 pandemic.
At 0636 GMT, the rand traded at 14.2700 against the dollar, 0.3% softer than its previous close.
On global markets, the dollar was 0.2% stronger against a basket of peers as investors awaited a European Central Bank meeting and more US data to gauge the policy outlook.
Statistics South Africa will publish the latest GDP numbers at 0930 GMT. Economists polled by Reuters have predicted quarter-on-quarter growth of 0.7% in seasonally adjusted and non-annualised terms, down from 1.1% in the previous three months.
Earlier on Tuesday, central bank data showed net reserves rose to $55.67 billion in August, boosted by an increase in holdings of special drawing rights. But that did little to affect rand trading.
Government bonds were also weaker in early deals, with the yield on the benchmark 2030 bond rising 3 basis points to 8.84%.
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