Rand firms as markets await budget speech

The rand firmed in early trade on Monday as investors awaited the finance minister’s budget speech on Wednesday.

The rand traded at R18.87 against the dollar.

The dollar was last trading down about 0.067% against a basket of global currencies.

Investor focus this week will be on Wednesday’s budget presentation, which will lay out the government’s spending priorities, revenue collection measures and updated economic forecasts for the coming year.

“Given the economy’s weak performance, we anticipate further fiscal slippage … The finance minister will try to appease markets, but he will more than likely disappoint,” Oxford Economics said in a note.

South Africa’s benchmark 2030 government bond was marginally stronger in early deals, with the yield down 1 basis point at 10.085%.