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Johannesburg - The rand traded in a narrow range against the dollar on Monday, with domestic focus firmly on Finance Minister Nhlanhla Nene's medium-term budget statement for an update on the health of the economy.
Nene is likely to cut the GDP growth forecast for 2014, when he delivers his first mini budget on Wednesday, largely due to crippling wage strikes earlier in the year, and will probably predict a wider budget deficit than seen in February.
The rand was at R11.0780 versus the dollar at 08:46, little changed from Friday's close at R11.0800.
READ: Mini budget: Tough task for Nene to convince
Government debt was also largely flat, with the yield for the paper due in 2026 - the benchmark for the secondary market - quoted flat at 8.115%.
In addition to Nene's speech, which was likely to give clues on possible changes to the government's borrowing plans, CPI inflation data also due out on Wednesday would provide guidance on the outlook for interest rates, analysts said.
"The market tends to expect the worst and then rally after the speech as the minister always manages to present an upbeat story," RMB analyst Deon Kohlmeyer said.
For the latest on the status of the economy read:
- SA economy will not recover - economist
- Inflation targeting: Sarb's no. 1 goal
- Current account deficit shock
- Platinum strike still affects economy - Sarb
- Sarb worries over ailing economy
Nene is likely to cut the GDP growth forecast for 2014, when he delivers his first mini budget on Wednesday, largely due to crippling wage strikes earlier in the year, and will probably predict a wider budget deficit than seen in February.
The rand was at R11.0780 versus the dollar at 08:46, little changed from Friday's close at R11.0800.
READ: Mini budget: Tough task for Nene to convince
Government debt was also largely flat, with the yield for the paper due in 2026 - the benchmark for the secondary market - quoted flat at 8.115%.
In addition to Nene's speech, which was likely to give clues on possible changes to the government's borrowing plans, CPI inflation data also due out on Wednesday would provide guidance on the outlook for interest rates, analysts said.
"The market tends to expect the worst and then rally after the speech as the minister always manages to present an upbeat story," RMB analyst Deon Kohlmeyer said.
For the latest on the status of the economy read:
- SA economy will not recover - economist
- Inflation targeting: Sarb's no. 1 goal
- Current account deficit shock
- Platinum strike still affects economy - Sarb
- Sarb worries over ailing economy
