Rand jumps 1% against dollar after upbeat GDP data
SA's economy grew twice as fast as economists expected in the third quarter, but the rand's gains against the pound have been muted by Brexit news
The rand strengthened more than 0.7% at 11.30am when Statistics SA reported that the third quarter's GDP came in at 2.6%, far better than economists expected.
The economy grew 1.1% in the third quarter on an annualised basis, well ahead of economists' forecast of growth of 0.5%, and confirming expectations that SA had exited its technical recession. "The uptick will certainly deliver a much-needed improvement in local consumer and business confidence," Peregrine Treasury Solutions corporate treasury manager Bianca Botes said. At 1.10pm the rand was 1.03% stronger against the dollar at R13.5531, 0.51% against the euro at R15.469 and 0.23% against the pound at R17.386. The euro was 0.52% firmer against the dollar at $1.1413. The bid on the benchmark R186 government 10-year note was at 8.87% from 8.9%. The local currency's gains were most significant against the dollar, which was under some pressure as doubts began to surface about the ongoing US-China trade war. The pound was al...