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In early trade the rand was 0.2% firmer at R14.98 per dollar
By Colleen Goko, Bloomberg
5 Feb 2021 11:10
Image: Shutterstock
The rand is headed for its biggest weekly gain since mid-December as investors warmed to signs that South Africaâs fiscal deficit may be lower than expected as tax revenue overshoots.
The rand traded 0.2% firmer at R14.98 per dollar by 8:34 a.m. in Johannesburg, bringing its gain this week to 1.2%, the best performance among emerging-market currencies after Turkeyâs lira. Bond yields extended a drop to the lowest in almost three years.
South African tax collections are expected to overshoot budget estimates, which could take some pressure off the National Treasury as it tries to reign in a fiscal deficit thatâs ballooned due to the coronavirus pandemic. Debt issuance is also higher than budgeted, with the government taking advantage of strong demand to boost weekly sales.