GDP numbers drive up rand

The rand strengthened against the dollar on the news of better than expected economic growth numbers.

The local currency went from R15.18 at 9:25 am to R15.01 by the time the JSE closed at about 5pm on Tuesday.

This strengthening followed Statistics SA saying the country’s GDP declined 6% year-on-year in the third quarter of 2020. This decline was smaller than the expected 7% year-on-year drop.

Read: Third quarter GDP increases by an annualised 66.1%

The rise against the dollar was also mirrored against the currencies of South Africa’s other leading trading partners. It was up 0.95% to R18.18 against the euro and 1.09% 20.06 against the pound.

The rise in the value of the rand against the dollar has seen it go from R15.48 on November 30.

Though the rand has showed renewed strength, it is still way off from where it started the year.

On January 2 it was trading at R14.09 to the dollar. It sank to R19.03 on April 24 at the height of the hard national Covid-19 lockdown.