Rand steady ahead of Q3 GDP data

The rand was little changed in early trade on Tuesday, ahead of the release of domestic growth data for the third quarter.

At 09:50, the rand traded at R17.35 against the dollar.

The risk-sensitive currency has had a turbulent few days, as political turmoil at home fuelled investor uncertainty, sending it over 4% lower against the dollar at one point last week before making a recovery.

President Cyril Ramaphosa gained a lifeline last night, after South Africa‘s ruling party said it would tell its lawmakers to reject a report that said he may have committed misconduct and violated the constitution.

Meanwhile, Statistics South Africa will release the country’s gross domestic product (GDP) data at 0930 GMT, with economists polled by Reuters predicting a 0.7% quarter-on-quarter growth and 2.8% year-on-year growth.

The dollar index, which measures the greenback against six major rivals, was last up 0.22% at 105.45, helped by strong US data that fuelled bets the Federal Reserve may stick with hiking interest rates for longer.

The government’s benchmark 2030 bond was marginally lower in early deals, with the yield up 1 basis point to 10.615%.