Cape Town – The rand see-sawed backwards heavily on Tuesday after Statistics South Africa revealed the country is in a technical recession for the second time in eight years as gross domestic product (GDP) contracted 0.7% for the first quarter of 2017.
The Madiba-clad currency erased gains made in a strong morning against the dollar, which saw the rand strengthen by 1% at 04:20 to trade at R12.69 to the dollar. By 12:25, it had reversed these gains, dropping 1.4% to trade at R12.89/$.
Yields on rand-denominated government bonds due December 2026 rose 6 basis points to 8.49%, the first increase in five days. The six-member banks index extended declines after the release, dropping 1.7% in Johannesburg.