JOHANNESBURG. — The rand was slightly firmer yesterday before midday, despite ratings agency Moody’s downgrading SA’s sovereign credit rating to one notch above junk status on Friday. The local currency closed at 12,94 to the dollar on Friday from Thursday’s 12,91 to the dollar, before the announcement was made.

Investec economist Annabel Bishop said the downgrade has had a marginal effect on the rand, especially coming so soon after news that the economy was in a recession.

While markets had already factored in SA’s recent downgrades, global risk-on trade boosted the rand and local currency debt’s performance.

The downgrade will however negatively affect domestic confidence measures, some large corporate fixed investments, and consumer expenditure decisions which will likely be put on hold, said Bishop. At 11.30am‚ the rand was at 12,8817 to the dollar from 12,8986‚ at 14,4495 to the euro from 14,5049 and at 16,3768 to the pound from 16,4701. The euro was at $1,1218 from $1,1201. — BDLive.

You Might Also Like

Comments

Take our Survey

We value your opinion! Take a moment to complete our survey