The rand weakened early on Monday, as power utility Eskom extended scheduled electricity cuts, which are a major brake on economic growth and source of investor concern.
At 9am, the rand traded at R17.15/US$, 0.16% weaker than its previous close. Eskom said in a statement it would implement stage-3 and stage-4 power cuts until Tuesday.
This week, investors will focus on an interest rate decision by the South African Reserve Bank. Eleven of the 20 economists polled by Reuters predicted the South African Reserve Bank would raise rates by 50 basis points to 7.5% at its upcoming rate-setting announcement on 26 January.
Most economists saw no further rate hikes after this week, forecasting the end of a tightening cycle that began in November 2021.
The government’s benchmark 2030 bond was almost unchanged in early deals, with the yield at 9.78%. — Anait Miridzhanian, (c) 2023 Reuters