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South African rand slips ahead of producer inflation, trade data
South African Rand coins are seen in this photo illustration.

South African rand slips ahead of producer inflation, trade data

South Africa's rand slipped in early trade on Thursday ahead of September producer inflation and trade balance data, while investors awaited the finance minister's answers to lawmakers' questions on his mid-term budget.



The dollar last traded about 0.1% weaker against a basket of currencies.

Finance Minister Enoch Godongwana will respond to lawmakers' questions later in the day, after his Medium-Term Budget Policy Statement (MTBPS) on Wednesday showed that wider budget deficits and higher debt are expected over the next three years.



"The rand initially lost some ground post-MTBPS, but this reaction was largely overshadowed by a stronger dollar," said Andre Cilliers, currency strategist at TreasuryONE.

"The currency remains sensitive to global dollar movements and domestic fiscal signals," Cilliers added.

Local investors will also look to September producer inflation figures and trade balance data due later in the day.



"An ongoing trade surplus would support economic growth and help offset fiscal challenges, lending the rand some resilience," Cilliers said.

On the stock market, the Top-40 index was down about 0.7% in early trade.

South Africa's benchmark 2030 government bond was weaker in early deals, with the yield up 3 basis points to 9.315%.

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Currency: GBP to NAD 22.74 | EUR to NAD 18.94 | CNY to NAD 2.47 | USD to NAD 17.73 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.27 | EGP to NAD 0.35 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.64 | ZWL to NAD 0.04 | BRL to NAD 3.04 | RUB to NAD 0.18 | INR to NAD 0.21 | USD to DZD 133.27 | USD to AOA 909.05 | USD to BWP 13.47 | USD to EGP 49.17 | USD to KES 129.2 | USD to NGN 1664.36 | USD to ZAR 17.73 | USD to ZMW 27.07 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1878.44 Up +0.10% | Casablanca Stock Exchange (CSE) MASI 14296.93 Down -0.02% | Egyptian Exchange (EGX) 30 Index 30793.94 Up +0.47% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 695.26/OZ DOWN -0.0184 | Copper US$ 4.28/lb DOWN -0.0374 | Zinc US$ 2 984.30/T DOWN -4.5% | Brent Crude Oil US$ 74.31/BBP DOWN -0.02 | Platinum US$ 975.59/OZ DOWN -0.0221 |