Rand slips as power cuts bite, GDP in focus

The rand was weaker in early trade on Tuesday as the country suffered the worst power cuts on record, ahead of the release of second quarter gross domestic product (GDP) data.

At 0610 GMT, the rand traded at R19.19 against the dollar.

The dollar last traded around 0.13% stronger against a basket of global currencies in thin trading.

“With the US closed … most markets were stable, except the rand that fell sharply,” said Rand Merchant Bank analysts in a research note.

The rand tumbled after South Africa’s struggling state utility Eskom reinstated the worst rolling blackouts on record, which mean up to 12 hours of power cuts for most households per day.

Local investors will turn their focus towards the monthly whole economy PMI data at around 0715 GMT and then the country’s second quarter GDP figures at 0930 GMT.

Analysts polled by Reuters predict a 0.1% quarter-on-quarter GDP growth.

South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 4.5 basis points to 10.380%.