The South African rand slips fell early on Tuesday as a surprisingly large rate hike in Australia increased global investor caution. At 0642 GMT, the rand was trading at 15.5100 against the dollar, about 0.5% weaker than its previous close.

The Reserve Bank of Australia raised interest rates to the highest in 22 years, surprising markets in the run-up to US inflation data and central bank meetings in Europe and the United States.
At 0642 GMT, the rand was trading at 15.51 rand against the dollar, about 0.5% weaker than its previous close.

Later in the session, the focus will be on South Africa’s first quarter gross domestic product figures, due at 0930 GMT.

Analysts polled by Reuters expect quarter-on-quarter growth of 1.2% and year-on-year expansion of 1.7%, in line with the previous quarter’s figures.

South Africa’s economic recovery from the Covid-19 pandemic has been uneven, and with unemployment near record levels, the government is under pressure to achieve higher growth rates.

The South African rand slipped early on Tuesday as a surprisingly large rate hike in Australia increased global investor caution.The government’s benchmark 2030 bond was weaker in early deals, with the yield rising 4.5 basis points to 9.94%.