Rand weaker on disappointing GDP data

The rand was weaker at midday on Tuesday after third-quarter GDP growth came in worse than expected.

SA’s third-quarter gross domestic product (GDP) increased by 0.7% on a seasonally adjusted annual basis compared with a contraction of 1.3% in the second quarter. The consensus expectation was for an increase of 1%.

At 11.35am‚ the rand was at R14.1334 against the dollar from a previous close of R14.0871.

Against the euro it was at R15.0537 from R14.9830 previously and at R21.3692 against the pound from R21.3027.

The euro was at $1.0652 from a close of $1.0635.

The market is now waiting for US third-quarter GDP data‚ which are due for release at 3.30pm local time.

"The US number is expected to attract more market attention and could influence the rand (ahead of) ... the expected US rate hike in December‚" a trader said.

The rand had broken through the R14.10/$ resistance level and could weaken above R14.20/$ over the short term‚ he said.

- TMG Digital/BDlive