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South African rand edges up before parliamentary committee debates budget - REUTERS
BY Sfundo Parakozov
JOHANNESBURG, June 4 (Reuters) – The South African rand edged up on Wednesday before a parliamentary committee was due to debate the long-delayed national budget.
At 0730 GMT, the rand traded at 17.81 against the dollar, about 0.2% stronger than Tuesday’s closing level.
The Standing Committee on Finance was to meet from 0800 GMT to consider the first piece of legislation associated with the budget.
It is set to adopt a report to either recommend that lawmakers pass the fiscal framework and revenue proposals or send them back to the National Treasury for further changes.
The budget was meant to be presented in February but has had to be revised twice due to disagreements in the ruling coalition government, largely over contentious plans to raise tax.
The third budget version presented by Finance Minister Enoch Godongwana in May is now expected to pass, after a coalition partner that rejected the two previous iterations backed it.
Early on Wednesday a purchasing managers’ index survey showed South African business activity grew at its fastest pace in four years in May.
That followed Tuesday’s gross domestic product data showing Africa’s biggest economy stagnated in the first quarter.
The benchmark 2035 government bond was slightly stronger in early deals, as the yield fell 2.5 basis points to 10.085%.
(Reporting by Sfundo Parakozov. Editing by Alexander Winning and Mark Potter)
