RAND HOLDS FIRM AS INVESTORS AWAIT SOUTH AFRICA’S Q2 GDP AND KEY ECONOMIC DATA
Currency steadies near R17.58/$ as markets look to GDP, mining, manufacturing, and current account figures; stronger reserves and central bank rate cut provide support
The South African rand was steady on Monday, trading at R17.58 to the U.S. dollar by 06:28 GMT, a slight gain of 0.2% from Friday’s close, as investors positioned cautiously ahead of a string of major economic data releases this week.
Statistics South Africa will publish second-quarter gross domestic product (GDP) figures on Tuesday at 09:30 GMT, a closely watched update on the health of Africa’s most industrialized economy. The country narrowly avoided contraction in the first quarter, posting just 0.1% growth, as declines in mining and manufacturing offset gains in agriculture.
Investor attention will then turn to mining and manufacturing production numbers as well as the current account balance, due on Thursday. These data points are expected to provide fresh clues about growth prospects, trade dynamics, and the sustainability of South Africa’s recovery.
The rand’s resilience comes against a backdrop of improving fundamentals. South Africa’s foreign reserves rose to $65.899 billion in August, up from $65.143 billion in July, according to central bank figures published last week. The increase has bolstered investor confidence, offering a stronger buffer against external shocks.
At the same time, the South African Reserve Bank (SARB) cut its benchmark lending rate by 25 basis points to 7% at its last policy meeting in July, signaling a commitment to pushing inflation closer to 3%, the lower end of its 3–6% target range. Analysts say the move could help ease borrowing costs and support growth, though it has also kept markets watchful for potential risks to price stability.
Sources: CNBC Africa, Reuters
