South Africa’s rand flat as market awaits mid term budget

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JOHANNESBURG (Reuters) – South Africa’s rand was largely flat against the dollar on Tuesday, with dealers and analysts expecting cautious trade ahead of Finance Minister Pravin Gordhan’s medium term budget on Wednesday.

* Rand at 13.8950 versus the greenback by 0639 GMT, barely shifted from Monday’s close at 13.9050.

* Traders say currency will tread water as market participation remains low, with investors unsettled by prosecutors’ order for Gordhan to answer fraud charges in court next week.

* Gordhan will this week present midterm budget plans under the watchful eye of ratings agencies who could cut South Africa to subinvestment grade if signs of fiscal slippage emerge.

* Stocks likely to open a tad firmer at 0700 GMT, with futures index inching up 0.22 percent.

* Government bonds edged slightly higher, yield on benchmark 2026 instrument dips half a basis point to 8.795 percent.


(Reporting by Stella Mapenzauswa; Editing by Tiisetso Motsoeneng)


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