JOHANNESBURG (Reuters) -The rand edged up on Thursday after losing ground over the past couple of days, as cautious investors awaited news on South Africa’s possible removal from the Financial Action Task Force’s (FATF) “grey” list.
At 1406 GMT the rand traded at 17.31 against the dollar, up about 0.6% from its previous close.
The commodity-backed currency fell on Wednesday following 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.
The most industrialised nation in Africa was added to the list 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.
On the Johannesburg Stock Exchange, the Top-40 index was last up 1.7%.
South Africa’s benchmark 2035 government bond weakened, as the yield rose 5 basis points to 8.95%.
(Reporting by Sfundo Parakozov and Anathi Madubela;Editing by Ros Russell and Ed Osmond)
