The South African rand dropped today, touching the lowest level since June 2016 against the US dollar, after the nation’s economy entered recession unexpectedly.
South Africa’s gross domestic product fell 0.7% in the June quarter on a seasonally adjusted annualized basis. Market participants had expected an increase by 0.6%. GDP contracted 2.6% in the previous quarter. The second consecutive quarterly decline means that the economy has officially entered recession.
USD/ZAR rallied from 14.8634 to 15.2632 as of 15:31 GMT today, touching the high of 15.3654 intraday.
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Rand Drops After South African Economy Enters Recession
