JOHANNESBURG: South Africa’s 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 0700 GMT, the rand traded at 17.1500 against the dollar, 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 (SARB).
Eleven of the 20 economists polled by Reuters predicted the South African Reserve Bank would raise rates by 50 basis points to 7.50% at its upcoming rate-setting announcement on Jan. 26.
South African rand slips ahead of inflation, retail sales data
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 9.780%.
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