The South African (SA) Rand softened in early trade on Thursday as investors awaited statistics agency data and President Cyril Ramaphosa’s annual State of the Nation address to gain a clearer picture on the country’s economic and political outlook.
The Rand traded at 15.8950 against the Dollar, down about 0.2% from Wednesday’s close, while the Dollar strengthened slightly against a basket of currencies.
Ramaphosa’s second State of the Nation speech since his coalition government formed in June 2024 is due at 17:00 Central African Time.
ETM Analytics said that while the government has much to celebrate, including improvements to the country’s fiscal position, a credit rating upgrade and smooth shift to a lower inflation target, a mounting water crisis remains the most urgent challenge.
Parts of Johannesburg, Gauteng Province, have endured water outages for more than three weeks while experts warn of a looming drought in the Western Cape Province.
SA’s statistics agency will publish December mining and manufacturing figures.
On the Johannesburg Stock Exchange, the Top-40 index was little changed in early trade.
SA’s benchmark 2035 government bond strengthened, with the yield falling by 2.5 basis points to 7.93%.
–Reuters–
