October 4, 2018 / 7:00 AM / 2 months ago

South Africa's rand weakens after World Bank cuts growth forecast

JOHANNESBURG, Oct 4 (Reuters) - South Africa’s rand retreated early on Thursday after the World Bank cut its economic growth forecast and took a dim view of President Cyril Ramaphosa’s stimulus plan.

* The rand was 0.29 percent weaker at 14.6875 per dollar at 0650 GMT, having closed in New York at 14.6450.

* The currency is expected to trade between 14.4500 and 14.8500 to the dollar on Thursday, NKC African Economics wrote in a note.

* The World Bank on Wednesday cut South Africa’s economic growth forecast for 2018 to 1 percent from an earlier forecast of 1.4 percent.

* Investors remain skittish on the rand following the announcement on Sept. 21 of a stimulus programme that will see a reallocation of the budget but does not involve an injection of new cash.

* In fixed income, the yield on the benchmark government bond due in 2026 flat at 9.090 percent.

* Stocks are due open weaker at 0700 GMT, with the JSE securities exchange’s Top-40 futures index down 1.26 percent. (Reporting by Nomvelo Chalumbira Editing by Joe Brock)

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