The rand steadied on Friday morning after another roller-coaster week for the local currency and broader markets.
TreasuryOne senior currency dealer Andre Botha said the rand was still recovering from the hangover of the medium-term budget policy statement‚ which had blindsided the markets.
The backlash played out in a much weaker rand and local bonds‚ though they have since stabilised somewhat. The upward revision in the projected government budget deficit and associated deterioration in the government debt-to-GDP ratio has revived concern that SA could be stripped of its investment-grade status.
Global markets continue to be jittery‚ casting a shadow over the recovery of the rand and local bonds‚ which tend to suffer more during bouts of global risk aversion.