The rand was firmer against the dollar on Wednesday morning ahead of the budget speech to be delivered by Finance Minister Pravin Gordhan. Gordhan is expected to deliver a contractionary budget where government spending will be cut while taxes are increased in an attempt to reduce SA’s budget deficit. The National Treasury said earlier in the week that it expected the budget shortfall to be 3.1%‚ and this would decrease slightly over the next two years. Sasfin Wealth analysts expected investors to remain cautious ahead of the speech. Nedbank analysts said markets would remain transfixed on the much-discussed likely parliamentary debut of former Eskom boss Brian Molefe. The analysts expected the rand to trade between R13.00 and R13.30. Internationally, the focus is on the next interest rate move in the US. The Federal Reserve will release minutes of its most recent policy meeting on Wednesday, which will give better insight into a possible rate increase in March. Rand Merchant bank 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.