At 16h46 CAT the Rand traded at 17.2425 against the Dollar, up 0.6% from its Friday close. Domestically-focused investors will scrutinise September consumer price inflation data this week for clues on the health of Africa’s largest industrialised economy.
“We expect limited upside inflationary pressure with a marginal 0.1% m/m increase. This translates to 3.3% year-on-year, in line with last month’s reading and close to the central bank’s target of 3.0%,” Investec Economist Lara Hodes said in a note.
Economists polled by Reuters expect inflation to edge up to 3.5% from 3.3% in August.
ETM Analytics said in a research note that SA remains on course to exit the FATF’s grey list of countries under increased scrutiny. Global anti-money laundering watchdog FATF’s plenary meeting takes place from October 22-24.
“Removal from the grey list may not have the same mechanical impact of increasing portfolio flows immediately, but it would lend the Rand greater support over the medium to long term, and at the very least, remove one reason for not exposing a portfolio towards SA,” said ETM Analytics.
–Reuters–
