The rand was firmer on Thursday afternoon, making gains from earlier trade as the market digested the budget that came, as expected, with higher taxes and expenditure restraints. At 3.31pm, the rand was at R12.8733 to the dollar from Wednesday’s R12.9751. It was at R13.6113 to the euro from R13.6979 and at R16.0874 to the pound from R16.1523. The dollar was at $1.0573 to the euro from $1.0558. The rand gained 10c on a budget that analysts said was "decent", as it also appeased the ratings agencies about the Treasury’s commitments to reducing SA’s deficit, debt and expenditure. TreasuryOne analyst Phillip Pearce said this could mean "the balancing act on a knife’s edge" may be leaning towards averting a downgrade this year. That sentiment had driven the rand, he said. Producer price inflation for January decelerated to 5.9% year-on-year in January from 7.1% in December, and from an average of 7.0% in 2016, surpassing market expectations of a 6.6% figure. Food products‚ beverages and ...
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