JOHANNESBURG, Sept 7 South Africa's rand
strengthened in early trade on Wednesday reaching its highest
level in over a week, extending gains following the release of
data showing better than expected economic growth in the second
* The rand firmed 0.31 percent to 13.9305 per
dollar, its highest level in over a week, at 0553 GMT versus
overnight close of 13.9745.
* South Africa's economy grew 3.3 percent, its most in six
quarters between April and June, helping to boost investor
* "ZAR has now recovered roughly half of ground it lost due
to uptick in political risk since late August 2016, buoyed by
stronger-than-expected GDP growth in Q2," said analysts at NKC
African Economics in a morning note.
* The currency remains vulnerable to domestic political risk
due to uncertainty whether a police investigation into Finance
Minster Pravin Gordhan could result in charges being laid for
his role in setting up a spy unit while he ran the revenue
* The Government benchmark 2026 bond also
strengthened 4 basis points to 8.685.
(Reporting by Tanisha Heiberg; Editing by Simon Cameron-Moore)