Johannesburg - South Africa's rand steadied against the dollar early on Friday as traders awaited the release of trade data later in the day for clues on the status of the economy.
At 06h50 GMT, the rand was at 11.5350 to the dollar compared with its Thursday closing level of 11.5400.
“This afternoon we get some South Africa data in the form of the trade balance and budget numbers,” Warrick Butler of Standard Bank said in a note.
“They are notoriously volatile but what the market will be looking for is at least some form of improvement in the data given that production in our manufacturing and mining sector has started up again after all the strikes last year.”
The market was also continuing to digest Finance Minister Nhlanhla Nene's budget speech in which he downgraded the economic growth outlook.
Ratings agency Fitch said on Thursday the budget highlighted the challenge the government faces in narrowing the deficit, curtailing interest expenditure and containing debt, without denting already sub-par economic growth.
“Fitch is sceptical about the government's ability and willingness to follow through with the fiscal consolidation promised in the budget,” said John Cairns of Rand Merchant Bank.
“While the budget should have lowered the probability of downgrades, we do not rule out the agency downgrading us in June.”
Government bonds weakened and the yield for the 2026 benchmark was up 3.5 basis points at 7.59 percent.
Reuters