Rand holds steady before key GDP data

Johannesburg - The rand held steady against the dollar early on Tuesday, as local investors braced for the release of domestic economic growth data later in the day.

Second-quarter economic growth data will be released at 11:30. The market consensus is for the economy to narrowly avoid a recession and expand 0.9% quarter-on-quarter, from a 0.6% fall in the first three months of the year.

The rand has scope to gain momentum and strengthen against the dollar, if the growth number does not disappoint the market.

At 08:28 the currency changed hands at R10.6980 to the dollar, slightly firmer than its R10.7125 close in New York on Monday.

The South African Reserve Bank's (Sarb's) hawkish stance since the start of the year has helped cushion the rand. The bank has attempted to stem inflationary pressures by raising interest rates by 75 basis points since January.

At 09:00 on Tuesday, the Sarb will release its business cycle indicator, while the Treasury will sell R2.35bn of debt, with two of the three bonds on the long end of the curve.

The results are due after auction closes at 11:00.

Yields on government bonds were flat at 6.545% on the 2015 note and at 8.205% on the 2026 issue.