South African Rand Dips Ahead of Q3 GDP Release

The South African Rand exhibited a slight decline in value against the dollar in early trading on Tuesday, with investors bracing for the upcoming release of the country's economic performance data. Coin illustrations of the South African Rand, captured on October 28, 2020, highlight the currency in focus.

Early Market Movements

Trading figures at 0825 GMT indicated that the Rand had weakened, trading at 18.8350 to the dollar, marking a modest drop of 0.1% from its previous close. Concurrently, the dollar experienced a slight increase of 0.1% when compared to a selection of international currencies.

Awaiting GDP Data

The closely watched gross domestic product (GDP) figures for the third quarter are set to be unveiled by Statistics South Africa at 0930 GMT. Consensus forecasts by analysts anticipate a slight downward trend with a 0.2% year-on-year decline, alongside a marginal quarterly slump of 0.1%.

Business and Bond Market Activity

Business activity within the private sector appeared stagnant in November as per a PMI survey. Although there was a notable ease in price pressures, it was offset by the disruptions faced in supply chains, exacerbated by challenges at the ports. Simultaneously, early trading on the Johannesburg Stock Exchange saw the Top-40 index drop by roughly 0.5%, and the nation's benchmark 2030 government bond yields increase by 2.5 basis points, reaching 9.985%.

Rand, GDP, Currency