The rand has tanked and is on its way to hitting the R18 mark on Tuesday as investors eagerly await inflation figures due later this week.
The ZAR was trading around R17.06 against the dollar at the beginning of this month.
The rand looked to break the R16 range as investor sentiment rose over the Government of National Unity (GNU), the South African Reserve Bank (SARB) cutting the interest rate by 25 basis points, and inflation lowering to 4.4%.
It looks as though the rand has lost all the gains it made and was trading at around R17.58 to the dollar on Tuesday at 7.30am.
The ZAR was trading at around R19.03 to the euro and around R22.86 to the pound.
New inflation figures
On Wednesday, Statistics South Africa will release monthly inflation figures which will play a huge role in determining if the Reserve Bank will cut the interest again in November.
It is expected that there is hope on the horizon and we could see a further drop in inflation in the September figures.
Medium Term Budget Policy Statement
The mid-term budget review will be presented by the Finance Minister, Enoch Godongwana on October 30, 2024.
The review will be the first budget policy statement under SA's GNU and will set out government’s financial plans for the next three years.
According to Reuters, several economists have expressed enthusiasm and expect an improved budget outlook due to a continued reduction in government expenditure and lower interest payments on debt.
This will in turn boost South Africa’s currency appreciation.
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