The rand slips as investors await GDP data

The rand slipped early on Tuesday, as investors waited for second-quarter gross domestic product (GDP) figures due out later in the day.

At 06:18 GMT, the rand traded at 14.91 versus the dollar, down 0.2% on the day.

The GDP data – due to be released at 09:30 GMT – will reveal whether the sputtering South African economy has fallen into recession, after growth fell by 2.2% in the first quarter.

South African President Cyril Ramaphosa has staked his reputation on kick-starting growth after a decade of stagnation, but he has found it hard to get the economy firing on all cylinders since replacing Jacob Zuma in February.

Analysts polled by Reuters expect second-quarter economic output to rise by 0.6% quarter on quarter, enough for the country to narrowly avoid a recession.

The rand fell by more than 1% on Monday, as appetite for the currency was dented by a dismal manufacturing survey and weakness elsewhere in emerging markets.

Financial turmoil in Turkey and Argentina has been a major contributor to rand weakness in recent weeks, as investors have dumped emerging market assets seen as riskier than those in developed markets.

Government bonds were unchanged early on Tuesday, with the yield on the benchmark bond maturing in 2026 at 9%.