Upbeat GDP figures boost the rand
The local currency firms after SA's economic performance in the fourth quarter of 2018 beat expectations
News of SA’s better-than-expected economic performance at the end of 2018 lifted the rand on Tuesday afternoon, although the local currency remains above the psychologically important R14/$ handle. SA’s economy grew 0.8% in 2018, better than the 0.7% growth rate that had been expected by the National Treasury and the Reserve Bank. At 3pm, the rand had gained 0.38% to R14.1572/$, 0.51% to R16.0376/€ and 0.87% to R18.5687/£. The euro was little changed at $1.1333. The upbeat GDP print has raised hopes that SA’s economy will accelerate in 2019, although headwinds remain, analysts said. “The local currency’s performance will remain subdued as the economy struggles to gain momentum, with Eskom posing the biggest threat," said Peregrine Treasury Solutions corporate treasury manager Bianca Botes. Focus is now expected to shift to a Moody’s credit-ratings review on March 29, although most analysts are confident SA will avoid another downgrade to junk status. International focus is on Brexit...
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