JOHANNESBURG: The South African rand slipped early on Tuesday, as a surprisingly large rate hike in Australia heightened global investor caution.

The Reserve Bank of Australia raised interest rates by the most in 22 years, stunning markets in the lead-up to US inflation data and central bank meetings in Europe and the United States. At 0642 GMT, the rand traded at 15.5100 against the dollar, around 0.5% weaker than its previous close.

Later in the session, the focus will be on South Africa’s first-quarter gross domestic product figures, which are due at 0930 GMT.

Analysts polled by Reuters expect quarter-on-quarter growth of 1.2% and a year-on-year expansion of 1.7%, in line with the previous quarter’s figures.

South African rand firms in early trade

South Africa’s economic recovery from the COVID-19 pandemic has been uneven, and with unemployment close to record highs the government is under pressure to achieve higher rates of growth.

The government’s benchmark 2030 bond was weaker in early deals, with the yield rising 4.5 basis points to 9.94%.