JOHANNESBURG (Reuters) -The South African rand was little changed on Wednesday after the parliament passed budget legislation that sets the overall limits for government spending and lays out key revenue-generating measures.
Disagreements in the coalition government have delayed the budget for months, but the parliamentary vote means there is now greater certainty over the fiscal trajectory in Africa’s biggest economy.
At 1615 GMT the rand traded at 17.6925 against the dollar, just 0.1% stronger than Tuesday’s closing level.
A domestic business confidence index edged up in May after a steep drop in the previous month.
The dollar last traded about 0.3% weaker against a basket of currencies after underlying inflation in the world’s largest economy rose less than expected, suggesting the Federal Reserve could cut interest rates sooner rather than later.
The Johannesburg Stock Exchange’s Top-40 index closed 0.4% lower.
The benchmark 2035 government bond also slipped, with the yield rising 3 basis points to 10.1%.
(Reporting by Sfundo Parakozov and Alessandro Parodi;Editing by Alexander Winning, Kirsten Donovan)
