South Africa’s rand was largely flat against the dollar on Tuesday, with dealers and analysts expecting cautious trade ahead of Finance Minister Pravin Gordhan’s medium term budget on Wednesday.
* Rand at 13.8950 versus the greenback by 0639 GMT, barely shifted from Monday’s close at 13.9050.
* Traders say currency will tread water as market participation remains low, with investors unsettled by prosecutors’ order for Gordhan to answer fraud charges in court next week.
* Gordhan will this week present midterm budget plans under the watchful eye of ratings agencies who could cut South Africa to subinvestment grade if signs of fiscal slippage emerge.
* Stocks likely to open a tad firmer at 0700 GMT, with futures index inching up 0.22 percent.
* Government bonds edged slightly higher, yield on benchmark 2026 instrument dips half a basis point to 8.795 percent.
Credit: CNBC Africa