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South African rand edges up as focus turns to next week’s medium-term budget - REUTERS
JOHANNESBURG, Oct 16 (Reuters) – The South African rand edged up in early trade on Friday as the dollar weakened, with investors focusing on next week’s medium-term budget for clues on the country’s fiscal outlook and credit-rating prospects.
- At 0712 GMT, the rand traded at 16.4450 against the dollar, about 0.3% firmer than its previous close.
- The dollar index, which measures the greenback against six major peers, was last down about 0.2%, putting the dollar on track for its first weekly decline in five weeks.
- Investors will be watching Finance Minister Enoch Godongwana’s medium-term budget policy statement next week for indications of South Africa’s fiscal trajectory, amid expectations of an improving budget balance and a more favourable ratings outlook.
- On the Johannesburg Stock Exchange, the Top-40 index was up about 0.2% in early trade.
- South Africa’s benchmark 2035 government bond was slightly firmer in early deals, as the yield fell 1.5 basis points to 8.69%.
