South African rand slightly weaker ahead of budget speech

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South Africa’s rand was a touch weaker in early deals on Wednesday as traders refrained from making any large moves ahead of the budget speech later in the day.

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At 0655 GMT, the rand traded at 11.75 versus the dollar, 0.17 percent weaker from its overnight close in New York.

NKC African Economics expects the currency to trade in an 11.60-11.95/dollar range.

Investors are also focusing on an expected cabinet shake-up under new President Cyril Ramaphosa and the future of Finance Minister Malusi Gigaba, who is due to deliver the budget speech in the afternoon.

Stocks opened little with the benchmark JSE-Top 40 index at 51,071.

In fixed income, government bonds were flat, with the yield on the benchmark instrument due in 2026 ZAR186= at 8.10 percent.

Reporting by Tiisetso Motsoeneng; Editing by Raissa Kasolowsky