South African Rand Steadies After Disappointing GDP Data

South African Rand Steadies After Disappointing GDP Data

The South African Rand (ZAR) steadied on Thursday as investors shrugged off disappointing gross domestic product (GDP) recorded for the second quarter of 2026.

Markets opened to weaker-than-expected economic data on Wednesday, with the country’s gross domestic product contracting 0.2% amid a global energy crisis and inflation pressure.

The local unit was trading at R16.05 to the dollar, First National Bank (FNB) said in a brief, remaining relatively stable as investors shrugged off the soft economic print that saw GDP growth contract in 2Q26 and shifted focus to upcoming domestic mining and manufacturing data.

Against other crosses, the rand was trading at R21.74 to the pound and R18.66 to the euro, the Bank said in the brief.  The yellow metal was trading at $4 401, holding on to recent gains as investors awaited key US inflation data for signals on the Federal Reserve’s next policy move.

Support came from a weaker dollar and safe-haven demand, while rising oil prices and Treasury yields, driven by escalating US-Iran tensions and inflation concerns, tempered further upside.

Brent crude oil prices have surged to $101.19 per barrel, marking their highest levels since May.

Prices are holding firmly above the $100 psychological threshold due to escalating US-Iran conflicts and recent tanker attacks near the Strait of Hormuz, which have severely intensified global supply disruption fears.

Brent was further pressured following attacks on Saudi energy facilities by Iran-backed Houthi militants, disrupting some operations. Global oil prices are expected to maintain an uptrend as US and Iran negotiations continue to fail. #South African Rand Steadies After Disappointing GDP Data# South African Rand Firmer Against Dollar on Strong Gold Prices