South African rand slips ahead of GDP data expected to show a decline

Business Recorder reported that the rand softened in early trading on Tuesday while markets waited for second-quarter GDP figures from Statistics South Africa, due at 0900 GMT. At 0625 GMT the currency stood at 16.0375 against the dollar, about 0.2% weaker than its previous close.

Economists polled by Reuters expect output to have shrunk 0.1% from the previous quarter, after expanding 0.5% in Q1 2026, with annual growth seen at 1.2%. According to ETM Analytics, such a result would halt six successive quarterly gains, although the headline may overstate underlying momentum. Nedbank's economists, who forecast a 0.2% contraction, attribute the outlook to soft conditions across domestic trade, electricity, gas and water, manufacturing and mining.

Farming and some services segments are expected to have kept supporting economic activity. Separately, the benchmark 2035 government bond also lost ground in early dealing, with its yield rising 4 basis points to 8.615%.