The South African rand edged up in early trade on Monday as investors looked ahead to a key week for economic data, including Finance Minister Enoch Godongwana’s medium-term budget policy statement and September inflation figures.
• At 0548 GMT the rand traded at 16.4475, up roughly 0.2% from its previous close
• Investor focus is expected to centre on Wednesday’s 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 and retail sales 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
• Nedbank economists expect headline inflation to accelerate to 4.8% in September from 4.4% in August, while annual retail sales growth is forecast to slow to 2.5% in August from 3.4% in July
• Nedbank said higher transport costs, driven by rising fuel prices and rand depreciation, would be the main source of inflationary pressure
• South Africa’s benchmark 2035 government bond was little changed in early deals, as the yield rose half a basis point to 8.7%
- The South African rand edged up in early trade on Monday as investors looked ahead to a key week for economic data, including Finance Minister Enoch Godongwana’s medium-term budget policy statement and September inflation figures.
- At 0548 GMT the rand traded at 16.4475, up roughly 0.2% from its previous close • Investor focus is expected to centre on Wednesday’s 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 and retail sales 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 • Nedbank economists expect headline inflation to accelerate to 4.8% in September from 4.4% in August, while annual retail sales growth is forecast to slow to 2.5% in August from 3.4% in July • Nedbank said higher transport costs, driven by rising fuel prices and rand depreciation, would be the main source of inflationary pressure • South Africa’s benchmark 2035 government bond was little changed in early deals, as the yield rose half a basis point to 8.7% Reuters
