Johannesburg – The South African currency started yesterday on a weaker footing, but cautious optimism continued to provide support later in the session ahead of next week’s pivotal medium-term budget policy statement (MTBPS) according to NKC Research.
Parastatals, including national carriers SAA and energy producer Eskom, will be among the key points that the finance minister will have to address at the MTBPS on October 28 in a hostile environment of political resistance against crucial labour and wage reform and privatisation. On US soil, the latest week’s jobless claims figures were a mix of hopeful and worrisome signs, as the US dollar index rose gradually yesterday.
At the close of local trade, the rand quoted 0.91% stronger at R16.20/$, after trading in range of R16.20/$ – R16.40/$. The rand was steady overnight as Asian stock markets traded mixed this morning. Today’s expected range is R16.00/$ – R16.40/$.