Rand extends losses as GDP contracts in third quarter
Analysts expected the data to prompt some movement in the local currency
The rand weakened further on Tuesday morning as third-quarter GDP fell below market expectations.
GDP growth contracted 0.6% in the quarter from 3.2% in the second quarter while rising only 0.1% year on year, data from Stats SA showed on Tuesday.
The median forecast, according to Bloomberg, was for GDP growth to have risen 0.4% year on year and to be unchanged for the quarter.
Analysts said the third-quarter GDP print was likely to prompt some movement in the rand, which reached a five week-high of R14.51/$ earlier before paring gains.
At 11.41am, the rand had weakened 0.75% to R14.6547/$, 0.78% to R16.2393/€ and 1.05% to R19.022/£. The euro was flat at $1.1081.
RMB analyst Deon Kohlmeyer said a negative GDP print would put bond yields under more pressure “from the precarious fiscal position the country is already in”.
Gold was up $1,465.35/oz while platinum added 0.29% to $901.25. Brent crude added 0.49% to $61.21 a barrel.