South Africa’s rand weakened in early trade on Monday, extending last week’s losses, with analysts citing the negative impact of the 2024 national budget on investor sentiment.
At 0824 GMT, the rand traded at R19.34 against the dollar, 0.25% weaker than its previous close.
“The negative mood post the budget speech persists and the risk for further weakness in the short term remains,” Andre Cilliers, currency strategist at TreasuryONE, said in a note.
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The government said last week it would draw down R150 billion ($7.8 billion) from contingency reserves at the central bank over the next three years to limit rising debt, but it offered little in the way of broad structural reforms.
On Saturday, the governing party ANC said it would work to resolve the country’s challenges of high unemployment, crime and poverty should it win decisively in the national election in May.
On the stock market, the Top 40 and the broader all-share indexes fell around 1% in early trade.
Shares in Sasol fell almost 6% after the company reported a 34% decline of in half-year profit.
South Africa’s benchmark 2030 government bond weakened in early deals, with the yield up 3 basis points to 10.165%.
