The rand gained, headed for the biggest monthly advance since December 2012, as South African Finance Minister Pravin Gordhan pledged to rein in spending to narrow the budget deficit over the next three years.
South African Finance Minister Pravin Gordhan aimed to appease investors and voters ahead of May 7 elections as he stuck to spending limits to reduce his budget deficit targets while trimming personal tax.
The dollar rose the most against the euro this month as new-homes sales unexpectedly rose last month, boosting speculation Federal Reserve Chair Janet Yellen will reiterate the central bank’s plan to continue to cut bond-buying when she testifies before a Senate panel tomorrow.
South African Finance Minister Pravin Gordhan cut his budget-deficit targets for the next three years as a weaker rand boosts tax revenue from exporters and the government pledges to stick to spending limits.
The rand retreated, pulling back from a six-week high, after Finance Minister Pravin Gordhan lowered South Africa’s growth outlook and said gross government debt will probably climb over the next three years.