JOHANNESBURG: South Africa’s rand weakened on Monday, ahead of Finance Minister Enoch Godongwana’s budget speech this week, which will provide insights on the state of Africa’s most industrialised economy.
At 1503 GMT, the rand traded at 18.4275 against the U.S. dollar, about 0.4% softer than its previous close.
Analysts said all eyes will be on the budget presentation to parliament on Wednesday, which will lay out the government’s spending priorities, revenue collection measures and updated economic forecasts for the year.
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Analysts polled by Reuters said South Africa’s budget deficit forecasts will be wider than those in its October estimates for the next three years.
On the stock market, the Top-40 index closed about 0.3% lower.
South Africa’s benchmark 2030 government bond was also weaker, with the yield up 5 basis points at 9.145%.
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