Market News
South African rand muted as traders eye possible ‘grey’ list exit - REUTERS
JOHANNESBURG, Oct 23 (Reuters) – The rand was flat in early trade on Thursday, as cautious investors awaited news on South Africa’s possible removal from the Financial Action Task Force’s “grey” list, along with key U.S. inflation data due later in the week.
At 0646 GMT the rand traded at 17.39 against the dollar, little moved from its previous close.
The commodity-backed currency fell on Wednesday on the back of a correction in precious metal prices such as gold, which extended its losses as traders booked profits ahead of U.S. inflation data due on Friday.
An uptick in domestic inflation to 3.4% in September from 3.3% in August slightly added to the rand’s weakness. But analysts say it will get a boost over the medium to long-term if South Africa is removed from the global anti-money laundering watchdog FATF’s “grey” list of countries under increased scrutiny.
It was added in February 2023 after criticism of its systems to stop money laundering and terrorist financing. The watchdog’s plenary meeting takes place from October 22-24.
South Africa’s benchmark 2035 government bond weakened in early deals, as the yield rose 2.5 basis points to 8.97%.
