Rand Gains as South African Economy Exits Recession

The South African rand gained against the US dollar today as the country’s economy exited its second recession in almost a decade.

South African gross domestic product rose 2.5% in the second quarter of this year on an annual basis after falling 0.6% in the previous three months. The surge of agricultural output by 34% from the previous quarter most likely played a large part in the improvement of the economy. Yet analysts were worried that the economic growth may be short-lived amid political turmoil and economic woes of the country.

USD/ZAR dropped 0.81% to 12.8665 as of 14:25 GMT today.

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