South African rand dips before GDP data

South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg, file. REUTERS/Siphiwe Sibeko

JOHANNESBURG (Reuters) – South Africa’s rand dipped on Tuesday, ahead of gross domestic product (GDP) data that is expected to show a dismal third-quarter performance.

At 0630 GMT, the rand traded at 14.5730 versus the dollar, 0.2% weaker than its previous close.

Analysts polled by Reuters have predicted a 0.1% GDP growth in the third quarter in seasonally-adjusted quarter-on-quarter terms, following a 3.1% expansion in the second quarter.

Statistics South Africa will release the data at 0930 GMT.

Almost two years after taking office, President Cyril Ramaphosa has struggled to get Africa’s most industrialised economy firing on all cylinders.

Investment levels and business confidence remain weak.

Government bonds were flat on Tuesday, with the yield on the benchmark 2026 instrument at 8.46%.

Reporting by Alexander Winning; Editing by Sriraj Kalluvila

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