Rand Holds Steady as Investors Await South African Economic Data

South Africa’s rand held steady against the dollar on Wednesday as investors remained cautious ahead of economic data expected to provide fresh insight into the health of Africa’s most industrialised economy.

At 0658 GMT, the rand traded at 15.9975 per dollar, little changed from its previous close.

The currency came under pressure on Tuesday after data showed South Africa’s economy contracted by 0.2% in the second quarter, its first quarterly contraction in nearly two years. The rand has since recovered some of its losses, helped by a weaker dollar and stronger gold prices.

Investors will focus on South Africa’s current account, mining and manufacturing data due on Thursday. U.S. producer prices are also due Thursday, followed by consumer inflation data on Friday.

South Africa’s benchmark 2035 government bond weakened in early trading, with its yield rising three basis points to 8.65%.