AGL 40.08 Increased By ▲ 0.08 (0.2%)
AIRLINK 131.26 Increased By ▲ 1.73 (1.34%)
BOP 6.87 Increased By ▲ 0.19 (2.84%)
CNERGY 4.53 Decreased By ▼ -0.10 (-2.16%)
DCL 8.82 Decreased By ▼ -0.12 (-1.34%)
DFML 42.20 Increased By ▲ 0.51 (1.22%)
DGKC 83.50 Decreased By ▼ -0.27 (-0.32%)
FCCL 32.82 Increased By ▲ 0.05 (0.15%)
FFBL 76.71 Increased By ▲ 1.24 (1.64%)
FFL 11.91 Increased By ▲ 0.44 (3.84%)
HUBC 109.98 Decreased By ▼ -0.57 (-0.52%)
HUMNL 14.37 Decreased By ▼ -0.19 (-1.3%)
KEL 5.52 Increased By ▲ 0.13 (2.41%)
KOSM 8.25 Decreased By ▼ -0.15 (-1.79%)
MLCF 39.10 Decreased By ▼ -0.69 (-1.73%)
NBP 64.50 Increased By ▲ 4.21 (6.98%)
OGDC 197.50 Decreased By ▼ -2.16 (-1.08%)
PAEL 25.89 Decreased By ▼ -0.76 (-2.85%)
PIBTL 7.71 Increased By ▲ 0.05 (0.65%)
PPL 156.50 Decreased By ▼ -1.42 (-0.9%)
PRL 26.02 Decreased By ▼ -0.71 (-2.66%)
PTC 18.00 Decreased By ▼ -0.46 (-2.49%)
SEARL 82.00 Decreased By ▼ -0.44 (-0.53%)
TELE 8.08 Decreased By ▼ -0.23 (-2.77%)
TOMCL 34.40 Decreased By ▼ -0.11 (-0.32%)
TPLP 8.76 Decreased By ▼ -0.30 (-3.31%)
TREET 16.85 Decreased By ▼ -0.62 (-3.55%)
TRG 59.20 Decreased By ▼ -2.12 (-3.46%)
UNITY 27.70 Increased By ▲ 0.27 (0.98%)
WTL 1.45 Increased By ▲ 0.07 (5.07%)
BR100 10,618 Increased By 211.3 (2.03%)
BR30 31,663 Decreased By -50.1 (-0.16%)
KSE100 99,099 Increased By 1770.9 (1.82%)
KSE30 30,878 Increased By 685.2 (2.27%)

JOHANNESBURG: The rand was weaker in early trade on Wednesday ahead of South Africa’s mid-term budget statement and the US Federal Reserve’s interest rate decision later in the day.

At 0727 GMT, the rand traded at 18.7300 against the dollar , about 0.4% weaker than its previous close.

The dollar last traded around 0.04% weaker against a basket of global currencies.

Finance Minister Enoch Godongwana will at 1200 GMT present to parliament the Medium-Term Budget Policy Statement (MTBPS), which updates economic forecasts, adjusts the budget and make emergency changes to spending.

“Investors will be watching Godongwana’s MTBPS address closely today to see how he juggles declining revenue against expenditure and what the country’s debt-to-GDP is projected to be,” said Andre Cilliers, currency strategist at TreasuryONE.

The rand has been surprisingly resilient in the run-up to the MTBPS, he added in a note.

South Africa’s rand starts week firm with focus on mid-term budget

South Africa will need to curb expenditure and see higher revenues for the rest of the year to achieve its fiscal estimates, said Investec chief economist Annabel Bishop.

“Markets are wary that in a low growth environment with high, and rising, bond yields this becomes more difficult,” Bishop said. Global markets will look to the Fed’s interest rate decision later in the day for guidance on the world’s biggest economy.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index traded around 0.36% weaker early in the day.

South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 3.5 basis points to 10.710%.

Comments

Comments are closed.