South African rand edges up as next week's medium-term budget draws focus

By Reuters News

JOHANNESBURG, Oct 15 (Reuters) - The South African 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.

  • At 0638 GMT, 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 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.

  • South Africa's benchmark 2035 government bond was also firmer in early deals, as the yield fell 6.5 basis points to 8.69%.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.