UPDATE 1-South African rand drops as power cuts continue

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(update prices)

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JOHANNESBURG, Nov 9 (Businesshala) – South Africa’s rand fell back on Tuesday, losing ground earlier in the week, as local power cuts were set to continue through the weekend and investors anticipate the Federal Reserve’s next move. Key US inflation data was awaited to be posted. .

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At 1517 GMT, the rand was trading at 15.0650 against the dollar, down 1% from its previous close of 14.9150.

Andre de Reuter, CEO of struggling state utility Eskom, said power cuts were set to gradually ease throughout the week, only to end on Saturday.

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Investors await Wednesday’s US inflation data, when a strong reading could resume talk of the Fed raising interest rates sooner than expected.

Local investors will also be watching Finance Minister Enoch Godongwana’s first medium-term budget policy statement (MTBPS), which on Thursday outlined the projected budget deficit and forecast for economic growth over the next three years.

Government bonds strengthened as the yield on the benchmark instrument fell 15 basis points to 9.27% ​​in 2030.

Meanwhile, the Johannesburg Stock Exchange dipped, its top-40 index slipped 0.12% to 61,247 points and the broader all-share index fell 0.1% to 67,983.

Shares of telecom firm Telkom closed more than 12% lower after the company reported weaker-than-expected results in its mobile business. (Reporting by Olivia Kumwenda-Matumbo and Emma Rumani; Editing by Sherry Jacob-Phillips and Mark Potter)

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