JOHANNESBURG: The South African rand was steady in early trade on Monday, ahead of a briefing by state utility Eskom outlining its plans for the southern hemisphere winter months.
Africa’s most industrialised nation has experienced recurring power cuts for more than a decade that have constrained economic growth.
Despite Eskom’s efforts to significantly reduce outages from the record levels seen in 2023, investor confidence remains shaky due to a high level of power cuts implemented in February, and subsequent lower level cuts in March and April.
At 0657 GMT, the rand traded at 18.40 against the dollar, little changed from Friday’s closing level of 18.42.
The greenback last traded slightly weaker against a basket of currencies as investors awaited further details on US-China trade relations, and the Federal Reserve’s policy meeting later this week.
South Africa’s economic calendar on Monday remains relatively quiet, with investor focus primarily on Eskom’s briefing slated for around 0700 GMT.
South African rand slips as investors wait for another revised budget
Attention will then shift to the release of the S&P Global Purchasing Managers’ Index (PMI) on Tuesday, followed by manufacturing and foreign reserves data due on Thursday.
South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 2 basis points to 8.845%.
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