DURBAN – The rand gave up its recent gains as it continued to be haunted by the rather uninspiring Medium-term Budget Policy Statement (MTBPS) delivered by the Finance Minister Tito Mboweni on Wednesday.
The domestic currency ranged between R14.97 and R15.19 to the dollar on Thursday.
At 5pm the domestic currency was bid 5c weaker than the same time bid on Wednesday at R15.10 against the dollar. Against the pound, it was 16c weaker at R19.52 and bid at R16.81 versus the euro.
Treasury Partner at Peregrine Treasury Solutions Bianca Botes said the rand was now off 3.75 percent from Wednesday opening. She said that the rand had come under pressure on Wednesday, weakening as much as 2.5 percent against the greenback and breaching R15.00/$.
She said the MTBPS offered little clarity on the reforms South Africans could expect in the 2020 budget. According to her, the increasing state debt burden and growth adjustment saw the rand wipe out all of its recent gains while the 25 bp Fed interest rate cut also did little to appease the market.