Johannesburg - The rand gained on Tuesday, shrugging off a fourth quarter contraction in gross domestic product.
The unit inched close to its firmest level in a week, helped by steadying commodity prices and strong demand for bonds.
By 5.40pm, the rand had strengthened to R12.99 to the dollar from an overnight close of R13.01, outperforming a number of its emerging market peers as it rallied to its best level since March 2 mid-session.
The economy contracted 0.3 percent in the final three months of last year as mining and manufacturing output shrank, reigniting concerns about falling government revenues and the country’s chances of holding on to its investment rate credit rating.
Bonds rallied, with the yield on the benchmark paper due in 2026, falling.