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South African rand flat before inflation data, budget speech

South African rand flat before inflation data, budget speech




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. 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%.



Source: Reuters

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