S.Africa's Woolworths flags lower half-year profit on weak clothing sales
South African rand stable before budget and Trump meeting
10:23 CAT | 19 May 2025
File photo: Reuters
The South African rand was stable on Monday as traders held off on big bets before this week’s budget speech and a planned meeting between President Cyril Ramaphosa and U.S. President Donald Trump in Washington.
At 0730 GMT the rand traded at 18.01 against the dollar , up about 0.1% on Friday’s close.
The rand has been gaining for weeks, supported by speculation that the government will announce a lower inflation target imminently and the belief that the coalition government will stay intact despite budget squabbles.
It will face a stern test on Wednesday, when Ramaphosa and Trump are due to meet, the finance minister will present a third version of the 2025 budget in parliament, and domestic inflation and retail sales figures will be released.
The Trump meeting is especially fraught with risk as he has repeatedly criticised South Africa since returning to the White House in January.
He has cut all financial aid, expelled South Africa’s ambassador and granted about 50 white South Africans refugee status, having deemed them victims of racial discrimination, albeit without providing evidence.
“The biggest risk to the rand this week will be President Ramaphosa’s visit to the U.S.,” ETM Analytics said in a research note.
Finance Minister Enoch Godongwana makes his third attempt to pass a budget after disputes with coalition partners over plans to increase tax scuppered two previous ones.
Godongwana will outline how he plans to plug a 75 billion rand ($4.1 billion) revenue hole after giving in to pressure to scrap a proposed value-added-tax hike.
The yield on the benchmark 2030 government bond was up one basis point at 8.89%.
Source: Reuters
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