JOHANNESBURG – The rand dipped on Tuesday, ahead of gross domestic product (GDP) data that is expected to show a weak third-quarter performance.
Analysts polled by Reuters have predicted a 0.1 percent GDP growth in the third quarter of 2019 in seasonally-adjusted quarter-on-quarter terms. This after a 3.1 percent expansion in the second quarter.
Investec economist Kamilla Kaplan said high frequency economic indicators suggested that the momentum in economic activity waned in this year’s 3rd quarter, with GDP forecast to have moderated to 0.0 percent quarter on quarter seasonally adjusted annualised from 3.1 percent quarter on quarter seasonally adjusted annualised in the 2nd quarter.
“For the year as a whole, GDP growth is widely expected to come in at around 0.5 percent year on year after the economy recorded growth of just 0.8 percent year on year in 2018,” said Kaplan.
The rand surprisingly firmed sharply and is quoted at this morning and turned out to the best performing emerging market currencies currency by some margin, according to TreasuryONE dealer Andre Botha.