JOHANNESBURG (Reuters) -The South African rand edged lower on Thursday as talks to try to form a government of national unity continued.
At 1535 GMT, the rand traded at 18.4150 against the dollar, 0.14% weaker than its previous close.
On Wednesday, South Africa’s Inkatha Freedom Party (IFP) said it would be willing to join a unity government with the African National Congress (ANC) and the Democratic Alliance (DA) after no party managed to secure a parliamentary majority in last month’s elections.
Neither the ANC nor the DA have confirmed any such arrangement. Markets favour a government that includes the pro-business DA.
“Investors are waiting for any signs of a formal agreement between the various political parties forming a government of national unity,” Rand Merchant Bank analysts said in a research note.
The ANC and DA’s senior leadership will both meet on Thursday. Parties are in a race against time to secure a deal before the newly elected parliament sits on Friday.
On the stock market, the Top-40 index closed 1% lower.
South Africa’s benchmark 2030 government bond was stronger, with the yield down 2 basis points to 10.105%.
(Reporting by Tannur Anders with additional reporting by Bhargav Acharya; Editing by Toby Chopra)
