South African rand gains against weaker dollar; budget review week’s focus
- The rand traded at 17.2550 against the dollar , 0.3% stronger than its closing level on Friday.
JOHANNESBURG: The South African rand gained against a softer dollar in early trade on Monday, with the finance minister’s mid-year budget review the week’s main focus.
At 0635 GMT, the rand traded at 17.2550 against the dollar , 0.3% stronger than its closing level on Friday.
The dollar was down about 0.1% against a basket of global currencies.
Finance Minister Enoch Godongwana’s budget review is expected to reflect a slightly better fiscal outlook, though the government’s economic growth projections could be revised down.
Economists will be watching what Godongwana says about the country’s inflation target, which he sets but the central bank has been pushing for him to lower.
Other economic data releases this week include third-quarter unemployment data and September manufacturing output on Tuesday, and September mining production on Thursday.
Some analysts think S&P Global will upgrade South Africa’s sovereign credit rating at a scheduled review on Friday.
The benchmark 2035 government bond was marginally stronger in early deals, as the yield fell 1 basis point to 8.815%.
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