South African rand firms, focus on next week's budget

JOHANNESBURG (Reuters) -South Africa's rand firmed on Friday, recouping its midweek losses to end below the 19.0 handle ahead of next week's budget speech.

At 1508 GMT, the rand traded at 18.9000 against the dollar, about 0.3% stronger than its previous close.

The dollar was last trading up about 0.13% against a basket of global currencies.

There were no economic data releases in South Africa on Friday.

Investors will now turn their attention to next week's budget presentation, which will lay out the government's spending priorities, revenue collection measures and updated economic forecasts for the coming year.

"The domestic currency... remains weak," said Investec analyst Laura Hodes, estimating it would trade in a range of 18.40 to 19.40 rand to the U.S. dollar next week.

The budget to be tabled on Feb. 21 is projected to see similar fiscal ratios to the Medium-Term Budget Policy Statement revisions, with fiscal consolidation delayed, she said in a note.

On the stock market, the Top-40 index closed 0.67% higher. South Africa's benchmark 2030 government bond was weaker, with the yield up 5 basis points to 10.095%.

(Reporting by Nellie Peyton; Editing by Gareth Jones and Jonathan Oatis)