Pivotal week for the rand as Mboweni’s budget dominates
Analyst says markets are numbing to pledges by government officials that seem unachievable
The rand, which slumped to a four-month low on Friday, is set for a potentially decisive week as investors wait to see if finance minister Tito Mboweni will deliver a budget that will appease the last ratings agency that has SA on investment grade.
SA’s currency, a barometer of sentiment towards emerging markets, has fallen 4.6% over the past month as the coronavirus outbreak led to a rush to safe havens such as US treasuries. For 2020, it is down almost 7%, with Brazil’s currency — the real — the only major currency to have fared worse.