Rand slides on Monday

The rand weakened early on Monday, as Eskom extended scheduled electricity cuts, which are a major brake on economic growth and source of investor concern.

At 09:13, the rand traded at R17.16 against the dollar.

Eskom said in a statement it would implement “Stage 3” and “Stage 4” power cuts until Tuesday.

This week, investors will focus on an interest rate decision by the South African Reserve Bank (Sarb).

Eleven of the 20 economists polled by Reuters predicted the South African Reserve Bank would raise rates by 50 basis points to 7.50% at its upcoming rate-setting announcement on January 26.

Most economists saw no further rate hikes after this week, forecasting the end of a tightening cycle that began in November 2021.

The government’s benchmark 2030 bond was almost unchanged in early deals, with the yield at 9.780%.