Rand weakens 20c to the dollar as market digests budget speech

The rand and South African bonds are facing both local and external headwinds, including a stronger dollar and tighter global financial conditions, he said.

The government plans to increases its long-term issuance of debt by 33% to R2.9-trillion by the 2021-2022 fiscal year.

Globally, the euro was under serious pressure after a flash eurozone purchasing managers index (PMI) missed expectations. The rand usually tracks the euro.

The rand has been somewhat range-bound this week, with analysts citing the budget statement as a factor in investment caution, while significant risk events also loom on Thursday and Friday. The European Central Bank (ECB) announces its latest stance on monetary policy on Thursday, while Friday sees the release of US GDP data.