JOHANNESBURG – The rand took a tumble during the finance minister’s budget speech.
The local currency slipping as much as 30 cents during the announcement and a further 30 cents shortly thereafter.
The fall in the rand was however not only due to local factors.
Rating’s agency, Moody’s, downgraded Brazil’s credit rating just as the minister began speaking.
This sent shivers down the spines of emerging markets like South Africa.
But some analysts have said that more aggressive tax hikes were expected, while the budget wasn’t geared for significant economy growth.