The South African (SA) Rand edged up in early trade on Monday as investors looked ahead to a key week for economic data, including Finance Minister Enoch Godongwana’s medium-term budget policy statement and September inflation figures.
The Rand traded at 16.4475, up roughly 0.2% from its previous close.
Investor focus is expected to centre on Wednesday’s medium-term budget policy statement, which could offer fresh clues on SA’s fiscal trajectory amid expectations of an improving budget balance and a more favourable sovereign ratings outlook.
Statistics SA is also set to release consumer inflation and retail sales on Wednesday, providing a snapshot of price pressures and consumer demand in Africa’s largest economy as Middle East conflict keeps fuel costs elevated.
Nedbank economists expect headline inflation to accelerate to 4.8% in September from 4.4% in August, while annual retail sales growth is forecast to slow to 2.5% in August from 3.4% in July.
Nedbank said higher transport costs, driven by rising fuel prices and Rand depreciation, would be the main source of inflationary pressure
SA’s benchmark 2035 government bond was little changed in early deals, as the yield rose half a basis point to 8.7%.
–Reuters–
