Rand flat ahead of Q2 GDP data

Rand was flat in early trade on Tuesday ahead of the country’s second-quarter gross domestic product (GDP) figures, which could give some clues on the health of the economy.

At 0630 GMT, the rand traded at R17.14 against the dollar, the same as its previous close, after falling to a two-year low on Monday.

“The rand was getting quite stretched and was due some correction,” Andre Cilliers, currency strategist at TreasuryONE, said in a research note.

Statistics South Africa will release the GDP figures at 0930 GMT, with economists polled by Reuters expecting 0.8% quarter-on-quarter contraction and 0.6% year-on-year expansion.

The dollar index, which measures the currency against six rivals, held steady at 109.59, after hitting 110.27 on Monday.

The government’s benchmark 2030 bond was unchanged in early deals, with the yield at 10.330%.