South African rand softer; focus on mid-term budget next week

JOHANNESBURG: South Africa’s rand weakened in early trade on Friday while local investors geared up for the country’s mid-term budget next week.

At 0751 GMT, the rand traded at 17.6975 against the dollar , about 0.2% softer than its previous close.

The dollar last traded about 0.02% firmer against a basket of currencies.

With little domestic data on the radar on Friday, the risk-sensitive rand will likely take direction from movements in the greenback.

Later on Friday, South African Reserve Bank Governor Lesetja Kganyago will give a talk on monetary policy after the COVID pandemic at the International Monetary Fund and World Bank’s 2024 annual meeting.

South African rand little changed; CPI data in focus

Next week, investors will look to South Africa’s Medium Term Budget Policy Statement for clues on the fiscal outlook of Africa’s most industrialised economy. The statement could provide insight into the country’s budget deficit.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index was down about 0.1% in early trade.

South Africa’s benchmark 2030 government bond was slightly stronger in early deals, the yield down 3 basis points to 9.335%.