Rand slips sharply over cut in growth forecast

At 4pm, the rand hovered around R15.70 to the US dollar.

Picture: Christa Eybers/EWN

JOHANNESBURG - The rand has slipped sharply after Finance Minister Pravin Gordhan cut his 2016 growth forecast to 0.9 percent, down from a previous forecast of 1.7 percent, citing the recent drought.

The local currency was trading at R15,33 to the dollar before Ghordan started his budget.

The rand then dropped substantially, particularly after the minister explained how he now expects our economy to grow only at 0.9 percent this year

It went through the R15.50 mark to around R15.55 by the time his speech was finished.

At 5.30pm, the rand was at R15.70 to the US dollar, the worst value so far today.

Earlier today, analysts said they thought this budget could strengthen the rand, but that low growth prediction seems to have the completely opposite effect.

Meanwhile, on the Johannesburg Stock Exchange (JSE), at lunchtime stocks were down substantially.

They've made up some of those losses, the JSE Top 40 down only 1,2 percent, that's been dragged down mainly by resources who are down by over four percent that decline started long before the Finance Minister began his speech.