World Markets

South African rand flat before inflation data, budget speech

Credit: REUTERS/THOMAS WHITE

South Africa's rand was little changed on Wednesday, ahead of the release of monthly inflation data and a mid-term budget speech by Finance Minister Tito Mboweni.

JOHANNESBURG, Oct 28 (Reuters) - South Africa's rand was little changed on Wednesday, ahead of the release of monthly inflation data and a mid-term budget speech by Finance Minister Tito Mboweni.

At 0645 GMT, the rand ZAR=D3 traded at 16.2175 versus the U.S. dollar, near the previous session's close.

Consumer price index data ZACPIY=ECI, due at 0800 GMT, is expected to show inflation stayed flat at around 3% year-on-year in September, reflecting weak demand in Africa's most industrialised economy.

Mboweni's budget speech will start around 1200 GMT and lay out high-level spending priorities for the next three years.

A Reuters poll last week predicted the minister would announce a marginally wider budget deficit forecast than the one that featured in June's emergency coronavirus budget.

Mboweni is also expected to unveil more bailouts for ailing state-owned companies, such as South African Airways, which have been a long-term drain on stretched public finances.

Government bonds were also flat, with the yield on the 2030 instrument ZAR2030= at 9.25%.

(Reporting by Alexander Winning; Editing by Aditya Soni)

((alexander.winning@tr.com; +27 10 346 1076))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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