The South African (SA) Rand edged up in early trade on Thursday as the Dollar slipped from an 18-month peak, with investors looking ahead to next week’s medium-term budget for clues on the country’s fiscal outlook and credit rating prospects.
The Rand traded at 16.5575 against the Dollar , about 0.3% firmer than its previous close.
The Dollar index , which measures the greenback against a basket of peers, fell, ceding most of the gains it made after stronger than expected United States (US) inflation data on Wednesday pushed it to an 18-month high.
Investors will be watching Finance Minister Enoch Godongwana’s medium-term budget policy statement next week amid expectations of an improving budget balance and a more favourable ratings outlook.
“The Rand is looking to US markets for direction, but the (medium-term budget policy statement) will keep traders in limbo,” ETM Analytics said in a note.
SA’s benchmark 2035 government bond was also firmer in early deals, as the yield fell 6.5 basis points to 8.69%.
–Reuters–
