Rand weakens slightly ahead of budget speech
Trading is expected to be conservative as the market waits for details on SA's fiscal consolidation
The rand was slightly weaker on Wednesday morning, as investors watched for details on the government's finances from the budget policy statement. The size of bailouts for SA's embattled state-owned enterprises are the key issue in the budget, as is the deficit, amid concern SA will lose its last remaining investment-grade sovereign rating status. At 10.21am the rand was down 0.46% to R14.1074/$, 0.54% weaker at R16.0115/€ and 0.29% softer at R18.4008/£. The euro was 0.09% weaker at $1.135. Global trade was also somewhat cautious, with analysts citing the release of minutes from the US Federal Reserve's last policy meeting. The Fed minutes were unlikely to offer any support to the dollar, said London Capital Group head of research Jasper Lawler. “When the Fed met in January, they made it very clear that they will not be raising rates anytime soon. A sharp contrast to the rate hike in December,” he said. gernetzkyk@businesslive.co.za
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