Rand may retreat from one-month high as investors await Tito Mboweni’s debt plans
If the medium-term budget fails to show a feasible way to rein in debt, the volatile rand could fall
The rand could give up gains that pushed it to its strongest level in a month against the dollar should finance minister Tito Mboweni fail to provide a credible path towards reining in SA’s debt burden when he presents the medium-term budget policy statement (MTPBS).
The rand, one of the most volatile emerging-market currencies, has, in recent weeks, largely taken its cue from events further from home, being driven by global headlines on potential Covid-19 outbreaks — and possible lockdowns — and US negotiations over a fiscal stimulus. It traded as strong as R16.08/$ on Tuesday on optimism that US politicians could agree on a package before the November 3 US presidential election...