Rand weakens ahead of third-quarter GDP

The rand was weaker on Tuesday morning as the market awaits the third-quarter GDP data.

The median forecast, according to Bloomberg, is for GDP growth to have risen 0.4% year-on-year and to be unchanged for the quarter after it expanded 3.1% in the second quarter.

Analysts say the third-quarter GDP print is likely to prompt some movement in the rand, which reached a five week-high of R14.51/$ earlier before paring gains.

At 10.10am, the rand had weakened 0.2% to R14.5742/$, 0.18% to R16.1435/€ and 0.4% to R18.8983/£. The euro was flat at $1.1077. 

The R2030 government bond was stronger, with the yield falling 1.5 basis points to 9.23%. Bond yields move inversely to bond prices.

“There is a good chance that the data may surprise negatively, which would put bond yields under more pressure from the precarious fiscal position the country is already in,” said RMB analyst Deon Kohlmeyer.

Gold was flat at $1,463.36/oz and platinum at $899.33. Brent crude added 0.31% to $61.10 a barrel.

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Source: businesslive.co.za