Trending 
South Africa’s rand opened stronger on Wednesday morning as markets turned their attention to the country’s 2026 national budget, which will be presented later in the day.
In early trade at 0615 GMT, the rand was changing hands at 15.9175 to the dollar, about 0.4% firmer than its previous close, reflecting cautious optimism among investors.
All eyes are now on Finance Minister Enoch Godongwana, who will deliver his budget speech at 1200 GMT. Investors are looking for clear signals on the coalition government’s spending priorities, how it plans to rein in debt, and what economic reforms may be on the horizon.
The stakes are high. Last year’s budget presentation was postponed after members of the governing coalition disagreed over the minister’s proposal to increase value-added tax by two percentage points.
Research firm ETM Analytics said expectations are elevated this time around. According to the firm, Godongwana has more breathing space fiscally, supported by a stronger domestic economy, increased tax revenues from robust commodity prices, and revenue overruns.
“If the government prioritises less dissaving and more infrastructure spending, it will help strengthen the economy’s backbone and ensure that the positive sentiment that has contributed to the ZAR’s impressive performance over the past six months continues for a while longer,” ETM Analytics said in a research note.
“Today’s market response to the Budget will offer some insight into whether the ZAR might continue to gain in the weeks ahead.”
Meanwhile, South Africa’s benchmark 2035 government bond also edged higher in early trading. Its yield fell by 3.5 basis points to 7.905%, signalling steady demand from investors.
