The South African rand achieved a second-straight day of gains against the world's reserve currency as a consequence of economic data released by China from the second quarter complying with estimates, according to Bloomberg.
Growth in China, the world's second-largest economy checked in at 7.5 percent, slightly short of the 7.7 percent during the first quarter of this year. GDP for the Asian nation was consistent with the median estimates of 74 percent of economists surveyed by Bloomberg.
"The rand looks stuck within a 9.85-10.30/dollar range for the time being," states a Absa Capital note, according to The New Age. "With the Fed likely to start normalizing policy towards the end of the quarter, with an associated expected slowing in capital inflows towards emerging markets, the risk lies in the local unit rising back to the top of this range, possibly as high as 10.50/dollar over the coming months."
Gains for the rand advanced 0.4 percent against the U.S. dollar during the early part of the Monday trade session.
Policy makers with the Reserve Bank of South Africa are poised to convene on Thursday, according to The New Age, which is likely to impact the value of the rand.
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