Rand slips ahead of mini budget speech

Johannesburg - The rand was slightly softer against the dollar on Wednesday as the market awaited Finance Minister Nhlanhla Nene's medium-term budget statement, which analysts expect to show little change in this year's deficit forecast.

The JSE securities exchange's Top-40 futures index ticked up 0.35%, suggesting the local bourse would open 168 points higher.

At 08:49, the rand was changing hands at R13.3425/$, down 0.3% from Tuesday's close.

All eyes are on the budget speech, set for 14:00. Nene is likely to target a budget deficit of 3.8% of gross domestic product for 2015 to 2016, in line with his February forecast of 3.9%.

Analysts and investors are also keen to see whether the mini budget has any details on the proposed multi-billion rand nuclear energy programme.

"There is no chance this country can afford a deal that will cost the National Treasury almost R1trn and so it is with slightly nervous bated breath that we await the release," Standard Bank trader Warrick Butler said.

Domestic inflation data due out at 10:00 and retail sales numbers expected at 13:00 might also influence the currency, traders said.

Government bonds also weakened in early trade, with the yield for 2026 benchmark debt adding 3.5 basis points to 8.305%.