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JOHANNESBURG. – The rand was trading in a weaker environment yesterday morning as the market mulled Finance Minister Nhlanhla Nene’s presentation of the medium-term budget policy statement. At 8.40am the rand was at 13,5218 against the dollar from its previous close of 13,5273. The local currency was at 15,3240 against the euro from 15,3397 and at 20,8610 against the pound from a previous close of 20,8612.
The euro was at $1,1332 from a previous close of $1,1338. In his speech, the minister warned that future tax increases could not be ruled out as the government strove to stabilise an ever-increasing mountain of debt and deal with “tough domestic challenges”.
Government debt is expected to soar by 600bn rand over the next three years. Barclays Research said in an early morning note that the lower than expected inflation data yesterday failed to anchor the rand at firmer levels.
“Following this morning’s weaker Chinese trading session, we believe that commodity-based currencies could remain on the back foot throughout the day,” the research team said. – BDLive.
Online Reporter