South African rand holds steady ahead of budget, inflation data

By Reuters News

JOHANNESBURG, Oct 20 (Reuters) - The South African rand held steady in early trade on Tuesday as investors awaited the medium-term budget presentation and September inflation data.

  • At 0600 GMT the rand traded at 16.4150 against the dollar , little changed from its previous close

  • "Local market participants may opt to keep positions as flat as possible ahead of the medium-term budget," said Adam Phillips of Umkhulu Treasury, adding that he expected the rand to trade in a narrow range

  • On Wednesday, Finance Minister Enoch Godongwana will present the medium-term budget policy statement, which could offer fresh clues on South Africa's fiscal trajectory amid expectations of an improving budget balance and a more favourable sovereign ratings outlook

  • Statistics South Africa is also set to release consumer inflation ZACPIY=ECI and retail sales ZARET=ECI data on Wednesday, providing a snapshot of price pressures and consumer demand in Africa's largest economy as Middle East conflict keeps fuel costs elevated

  • Economists polled by Reuters expect headline inflation to accelerate to 4.7% in September from 4.4% in August, while annual retail sales growth is forecast to slow to 3.0% in August from 3.4% in July

  • South Africa's benchmark 2035 government bond was flat in early deals, with the yield at 8.735%.

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