Market 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%.