The rand steadied on Friday morning, catching its breath after racing to a three-year high against the dollar, outpacing its emerging-market peers in the process. Investec economist Annabel Bishop still sees further momentum in the rand if SA can successfully navigate its way through the budget, which Finance Minister Malusi Gigaba will table next week. Gigaba will have his work out cut out for him in trying to balance an array of competing interests, given the current fiscal constraints. The country has projected a budget deficit of R50.8bn in the 2017-18 financial year. The budget will help inform Moody’s ratings review on the country, which is set to follow shortly after the budget. "The good gains the rand has made could be extended towards R11.55/$, and move towards R11/$, barring any further credit rating downgrades for SA and a credit-positive budget," Bishop said in an e-mailed note. The rand was on course for its best weekly gain against the dollar since December when Cyril...
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.