The South African rand showed strength against the US dollar on Tuesday morning despite a government report showed that South Africa's gross domestic product or GDP at market prices decreased a seasonally adjusted and annualized 3% in the second quarter.

Economists were looking for a decline of 3.3%. The GDP had fallen 6.4% in the previous quarter and was up 1.7% a year earlier.

On an unadjusted basis, the GDP at market prices dropped an annualized 2.8% in the second quarter compared to a 1.3% fall in the preceding quarter.

Bouncing back from Monday's fresh multi-week low, the rand advanced more than 2.1 percent against the US dollar to reach a high of 8.0379 around 5:00 am ET. This may be compared to yesterday's close of 8.165. The dollar-rand pair stayed on holding pattern thereafter and is currently worth 0.8412 with 7.992 seen as the next target level.

US Dollar vs ZAR (FX:USDZAR)
Forex Chart
From Jun 2024 to Jul 2024 Click Here for more US Dollar vs ZAR Charts.
US Dollar vs ZAR (FX:USDZAR)
Forex Chart
From Jul 2023 to Jul 2024 Click Here for more US Dollar vs ZAR Charts.