JOHANNESBURG: South Africa’s rand edged higher in early trade on Tuesday, as investors held off from placing big moves ahead of mid-term budget announcement this week.

At 0717 GMT, the rand traded at 17.6675 against the US dollar, about 0.17% firmer than Monday’s closing level.

The dollar last traded about 0.04% firmer than its previous close.

Finance Minister Enoch Godongwana’s budget policy statement to parliament on Wednesday will provide clues on the fiscal outlook of Africa’s most industrialised economy.

A Reuters poll of economists published last week predicted the budget will lay out a lower 2024/25 budget deficit estimate than was given in February’s main budget, but fiscal challenges are expected to slow consolidation efforts next year.

South African rand flat; mid-term budget the week’s highlight

Earlier in the day, the South African Reserve Bank published the country’s M3 money supply and private sector credit figures for September.

Credit growth fell to 4.63% from 4.95% in August, while M3 money supply growth rose to 7.25% from 6.11% over the same period.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index was down about 0.3% in early trade.

South Africa’s benchmark 2030 government bond was slightly stronger in early deals, as the yield slipped 4.5 basis points to 9.245%.