JOHANNESBERG, Feb 25 – South Africa’s rand strengthened in early trading ahead of the 2026 national budget speech by Finance Minister Enoch Godongwana.
The currency traded at 15.9175 per dollar at 0615 GMT, about 0.4% firmer than its previous close, according to market data. The rand also held just below 16 per dollar, close to its strongest level since 2022 as investors awaited the budget presentation scheduled for 1200 GMT.
Investors are looking for details on fiscal priorities, debt management and economic reforms in the government’s plan.
The 2025 budget was postponed after coalition partners disagreed over a proposed two percentage point increase in value added tax.
ETM Analytics said improved economic growth, higher commodity linked tax revenue and revenue overruns have given the Treasury more fiscal room this year. The rand has also been supported by higher precious metal prices and improved investor sentiment linked to recent political stability.
South Africa’s benchmark 2035 government bond strengthened in early deals, with the yield falling 3.5 basis points to 7.905%.
