The South African rand was steady on Friday trade, as investors worried about a correction in global stock markets following strong gains.

At 16:00, the rand traded at 17.34 against the dollar.

"The ZAR is on the defensive at the moment, and the reason is clear. The world's largest stock markets are correcting after months of gains, which is worrying investors," ETM Analytics said in a research note.

Domestically focused traders will next week look at employment data and mining and manufacturing data for further clues on the health of Africa's largest economy.

However, the National Treasury's 2025 medium-term budget statement on Wednesday will command most of the attention.

Nedbank economists anticipate a slightly brighter fiscal position, with the Treasury showing progress in stabilising the government's finances.

"We project a slightly smaller consolidated budget deficit of 4.4% of GDP for this fiscal year than the 4.8% projected in Budget 2025. Thereafter, we see the shortfall narrowing slowly, staying above 3% in FY2028/29. Our forecasts indicate that the primary surplus will hover around 2% of GDP by the end of the forecast period," said the bank in a research note.

Nedbank's economists also projected an upward growth trajectory for the next three years as subdued inflation and lower interest rates sustain consumer spending and easing energy and logistical constraints enable a recovery in fixed investment.

On the Johannesburg Stock Exchange, the Top-40 index was last down 1% in early trade.

South Africa's benchmark 2035 government bond was also down in early deals, with the yield up 1 basis point to 8.775%.