The rand was weaker against the dollar on Friday afternoon, taking its cue from the euro, which came under pressure from Italian politics. The anti-establishment Italian government has decided on a budget for 2019 that has put it on a collision course with the EU, analysts said. Italy’s government is insisting on running a 2.4% budget deficit, which is above market expectations and sent Italian sovereign bonds rates to their highest yield in months, said BK Asset Management MD Boris Schlossberg. Further volatility is expected, with EU officials already warning Italy’s financial system is at risk. Local news was more positive, with SA posting a trade surplus of R8.8bn in August, well ahead of the Trading Economics consensus forecast of R5bn. The year-to-date trade surplus of R2.66bn is a deterioration on the surplus for the comparable period in 2017 of R39.93bn, the South African Revenue Service (Sars) said. Exports year-to-date increased by 5% while imports for the same period showe...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now