South African rand edges up as focus turns to next week's medium — term budget

JOHANNESBURG, Oct 16 (Reuters) — The South African rand edged up in early trade on Friday as the dollar weakened, with investors focusing on next week's medium-term budget for clues on the country's fiscal outlook and credit-rating prospects. At 0712 GMT, the rand traded at 16.4450 against the dollar, about 0.3% firmer than its previous close. The dollar index, which measures the greenback against six major peers, was last down about 0.2%, putting the dollar on track for its first weekly decline in five weeks. Investors will be watching Finance Minister Enoch Godongwana's medium-term budget policy statement next week for indications of South Africa's fiscal trajectory, amid expectations of an improving budget balance and a more favourable ratings outlook. On the Johannesburg Stock Exchange, the Top-40 index was up about 0.2% in early trade. South Africa's benchmark 2035 government bond was slightly firmer in early deals, as the yield fell 1.5 basis points to 8.69%. (Reporting by Nilutpal Timsina; Editing by Joe Bavier) ((mailto:Nilutpal.Timsina@tr.com)