The rand had its biggest drop in nearly 14 months and bonds slumped after finance minister Tito Mboweni unveiled a medium-term budget policy statement (MTBPS) that laid bare the costs to the country of Eskom’s bailouts.

The rand dropped 2.59% on Wednesday, its biggest fall since September 2018, pushing it through the R15/$ level for the first time since October 10. Yields on the country’s 10-year bond yields, which move inversely to the price, increased to the highest in more than two months as some analysts said the budget made a Moody’s Investors Service change to the country’s rating outlook from stable to negative all but inevitable.

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, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.