# Rand, bonds extend losses on budget shock - Moneyweb

> The rand and government bonds fell for a second day after Finance Minister Malusi Gigaba's budget raised the 2017/18 deficit to 4.3% of GDP, the highest since 2009. The rand hit an 11-month low of 14.30 per dollar, and Fitch and S&P flagged concerns about debt reaching nearly 60% of GDP and the risk of further downgrades.

- Date: 2017-10-26 · published 2017-10-26T12:00:00.000Z
- Category: policy · region South Africa · magnitude medium
- Page: https://feedsoft.ai/events/68776-rand-bonds-extend-losses-on-budget-shock-moneyweb
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

The budget shock increases the risk of credit downgrades, which would raise borrowing costs and weaken the rand further. A weaker rand makes dollar-priced feed imports more expensive for South African buyers.

## Read by commodity

- USDZAR: bullish ▲

## Sources

- moneyweb.co.za: https://www.moneyweb.co.za/in-depth/budget/rand-bond-add-to-losses-on-budget-shock/
- moneyweb.co.za: https://www.moneyweb.co.za/news-fast-news/rand-bonds-extend-losses-on-budget-shock/

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.