The rand rallied to its best level against the dollar in about three weeks on Wednesday morning just hours before Finance Minister Pravin Gordhan will table the medium-term budget policy statement, which analysts say has the potential to stave off a ratings downgrade. "We expect today’s budget will be rand supportive. Look for only mild fiscal slippage, an impressive performance given the weakness in the economy," Rand Merchant Bank currency strategist John Cairns said. "With local elections out of the way, the budget has no populist tones to strike but the National Treasury will need to tightly hold on to the expenditure ceiling and allude to progress on reforms given the political uncertainty and rating pressure." The rand has steadily regained a lot ground since plumbing lows of R14.50 to the dollar about two weeks ago when the National Prosecuting Authority (NPA) brought fraud charges against Gordhan, who has dismissed them as politically motivated. Standard Bank trader Oliver A...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.