logo

South Africa's rand largely flat against in anticipation of mid term budget

PUBLISHED: Tue, 25 Oct 2016 07:05:17 GMT

Share

South Africa’s rand was largely flat against the dollar on Tuesday, with dealers and analysts expecting cautious trade ahead of Finance Minister Pravin Gordhan’s medium term budget on Wednesday.

* Rand at 13.8950 versus the greenback by 0639 GMT, barely shifted from Monday’s close at 13.9050.

* Traders say currency will tread water as market participation remains low, with investors unsettled by prosecutors’ order for Gordhan to answer fraud charges in court next week.

* Gordhan will this week present midterm budget plans under the watchful eye of ratings agencies who could cut South Africa to subinvestment grade if signs of fiscal slippage emerge.

* Stocks likely to open a tad firmer at 0700 GMT, with futures index inching up 0.22 percent.

* Government bonds edged slightly higher, yield on benchmark 2026 instrument dips half a basis point to 8.795 percent.


Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.