Independent Online

Monday, August 15, 2022

Like us on FacebookFollow us on TwitterView weather by locationView market indicators

Rand firms as focus shifts to Enoch Godongwana's maiden Budget speech

The rand strengthened in early trade on Wednesday as fears of an all-out war over Ukraine receded and investors' focus shifted back on the national Budget to be presented later in the day. (AP Photo/Denis Farrell)

The rand strengthened in early trade on Wednesday as fears of an all-out war over Ukraine receded and investors' focus shifted back on the national Budget to be presented later in the day. (AP Photo/Denis Farrell)

Published Feb 23, 2022

Share

The rand strengthened in early trade on Wednesday as fears of an all-out war over Ukraine receded and investors' focus shifted back on the national Budget to be presented later in the day.

At 0635 GMT, the rand traded at 15.0272 against the dollar, 0.2 percent stronger than its previous close.

Story continues below Advertisement

Riskier currencies across the world had seen investors fleeing to haven currencies in the Far East and the dollar late Monday and early Tuesday.

But, after a slew of sanctions imposed by several countries on Tuesday, it looked like a full-scale war could be averted, boosting riskier currencies.

All eyes are now on the annual Budget to be presented by the Finance Minister Enoch Godongwana.

"The rand has opened at 15.04 this morning ahead of Finance Minister Enoch Godongwana's maiden budget speech later today. Analysts are expecting a reasonably positive address and we could see the rand trade below the 15.00 level again," said Andre Cilliers, a currency strategist at TreasuryONE, in a note.

Godongwana, in his maiden Budget speech, is expected to walk a tightrope between allocating funds for social spending and sovereign debt repayments.

Investors will be keenly looking out for how the Budget plans to most prudently allocate bumper tax receipts due to high commodity prices.

Story continues below Advertisement

REUTERS

Share