Rand and bonds pare losses after initial shock over medium-term budget

SA assets — including the rand, bonds and stocks — came under pressure on Wednesday after finance minister Tito Mboweni unveiled a bigger-than-expected budget deficit.

The rand initially weakened sharply to a one-week low while the JSE had its worst session since the first day of SA’s hard lockdown on March 27, but analysts did say the government has at least presented a credible plan for reining in spending.