The South African (SA) Rand was steady in early trade on Thursday as investors digested the annual budget, which analysts said underscored the government’s commitment to restoring fiscal sustainability.

Rand traded at 15.8675 against the Dollar, little changed from its previous close of 15.8725

The government said in its annual budget on Wednesday that it would propose a “principles-led” fiscal anchor later this year, rather than a numerical target, as part of efforts to restore the health of public finances.

“The key theme around by Finance Minister, Enoch Godongwana’s Budget Speech was ‘fiscal anchor’. That description certainly resonated with operators and investors. The Rand appreciated to 15.83, although towards the close importers pushed it a minuscule weaker,” said Adam Phillips, Treasury Specialist at Umkhulu Treasury.

Domestically focused investors will turn their attention to Statistics SA’s January domestic producer inflation figures, with analysts polled by Reuters expecting it to come in at 2.5%.

“Our Producer Price Index forecast shows producer inflation easing slightly from 2.9% in December to 2.8% in January. The downward pressure mainly stems from the ‘coke and petroleum products’ subcategory. Within this category, the downforce will emanate from fuel prices,” Nedbank Economists said in a research note.

–Reuters–