The South African rand lost value against the U.S. dollar on Friday as Chinese gross domestic product did not develop as quickly as economists projected during the first quarter of the year, Bloomberg reports.
The monetary unit of the largest economy on the African continent was diving toward a second consecutive week of losses to the world's reserve currency, as this week's losses are roughly 4 percent. The National Statistics Bureau indicated first quarter GDP of the Asian nation, which hosts the globe's second largest economy, checked in at 8.1 percent larger than from the same period of 2011, marking the slowest pace in 11 years.
"Yesterday the rand came back against all the majors, it's improved a bit and showing some stability. (The) pick-up in the rand points to some near-term stability," technical strategist Judy Padayachee with Absa told Reuters on Friday.
China is the largest buyer of South African raw material, government data from 2011 indicates. Reuters indicates approximately 30 percent of South African exports go to Asia.
Padayachee noted she anticipates additional recovery for the rand next week.