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Johannesburg - The rand edged firmer against the dollar on Wednesday as the finance minister's comments on South Africa's fiscal outlook helped the local unit fend off persistent concerns about growth prospects.
Speaking to Reuters in London, recently appointed Finance Minister Nhlanhla Nene said that while South Africa was likely to cut its 2014 growth forecast next week, he did not expect the economy to slip into recession.
"We are moving in a direction to restrain expenditure in some areas but we need to look at revenue-raising measures also," Nene said ahead of his debut budget speech next Wednesday.
The rand ticked 0.01% firmer to 11.0400 by 15:09 GMT, shrugging off a slow-down in domestic retail sales and more data indicating diminishing demand from South Africa's biggest export destination, China.
"Nene is looking at setting certain ceilings, he seems very serious about that, and the rand has taken strength from that," said Cheslyn Francis, an economist at Afrifcous Securities.
Earlier, China's consumer inflation slowed more than expected in September to a near five-year low, adding to worries growth in the world's second-largest economy was cooling fast.
The rand was also aided by hopes the US central bank might further delay raising rates after cracks appeared in the United States' recent economic recovery.
US retail sales and producer prices slumped, according to data released on Wednesday, the latter for the first time in more than a year.
Local bonds were flat, with yields on the benchmark paper due in 2026 unmoved at 7.98%.
