The South African rand slipped on Tuesday, trading around 17.27 per U.S. dollar, down about 0.3%, as investors awaited the release of the South African Reserve Bank’s (SARB) leading business cycle indicator, a key gauge of future economic activity, according to Reuters.
The indicator, which tracks data such as vehicle sales, business confidence, and money supply, will provide fresh insight into the country’s economic outlook. Market sentiment was further shaped by anticipation of a Financial Action Task Force (FATF) meeting, with investors hopeful that South Africa may soon be removed from the watchdog’s “grey list,” a move expected to strengthen investor confidence and stabilize capital inflows.
In the bond market, yields on the benchmark 2035 government bond edged down 1.5 basis points to 8.91%, reflecting cautious optimism among investors, Reuters reported.
Analysts noted that the rand’s muted performance underscores investor restraint ahead of key data releases, while external factors such as global risk sentiment and dollar strength continue to influence short-term movements in the currency.
