Rand recovers slightly after MTBPS

The local currency hit an 11-month low after Finance Minister Malusi Gigaba painted a bleak picture of the country’s finances.

Picture: EWN

JOHANNESBURG - The rand has recovered slightly after suffering heavy losses last week sparked by concerns around Finance Minister Malusi Gigaba’s maiden budget address.

The local currency hit an 11-month low after Gigaba painted a bleak picture of the country’s finances and economic growth prospects for the year.

Absa asset management’s James Turp believes the rand is in for a recovery this week.

“We could be in for short-term recovery in terms of the rand at just below R14. It seems there’s some more positive sounds coming from the Finance Ministry, so perhaps the market is taking stock of the extremely negative response from the medium-term budget.”

(Edited by Shimoney Regter)