Market News
South African rand holds steady as investors await FATF verdict - REUTERS
JOHANNESBURG, Oct 24 (Reuters) – The rand held steady in early trade on Friday as South Africa awaited the outcome of its Financial Action Task Force review, with markets largely pricing in that it will be removed from the watchdog’s “grey list” of countries under increased scrutiny.
Africa’s largest economy was added to the list in February 2023 after criticism of its systems to stop money laundering and terrorist financing.
At 0743 GMT the rand traded at 17.31 against the dollar, little changed from Thursday’s close.
“Although it is not a foregone conclusion that South Africa will exit the grey list, optimism runs high with the authorities clearing virtually all the points on the checklist,” ETM Analytics said in a research note.
The note added that a positive outcome would help keep the local currency on the front foot heading into the weekend.
The dollar last traded flat against a basket of currencies as traders eyed a key U.S. inflation report due later in the day, which has been delayed due to the government shutdown.
On the Johannesburg Stock Exchange, the Top-40 index was last down 0.3%.
South Africa’s benchmark 2035 government bond was slightly stronger in early deals, as the yield fell one basis point to 8.925%.
