The rand was weaker on Monday morning‚ but still maintained relative composure‚ taking last week’s downgrades in its stride.
On Friday‚ Fitch condemned SA’s foreign-currency and local-currency denominated debt to subinvestment grade‚ setting off the fear of fund outflows.
“The rand has stabilised but‚ rather than following the normal pattern of stability to recovery‚ we are concerned that it could come under pressure again at the start of this week‚” Rand Merchant Bank John Cairns said in a note.
The Fitch decision followed that of S& P Global Ratings in downgrading the country’s credit rating‚ capping an eventful week that also featured nationwide protests over the Cabinet reshuffle.
“Losing not only our foreign currency investment grade rating‚ but also the local currency investment grade rating is a blow to the economy‚” said NKC Research analysts.
At 9am‚ the rand was at R13.8470 to the dollar from Friday’s R13.7508‚ R14.6549 to the euro from R14.5630 and R17.1650 to the pound from R17.0383
The euro was unchanged at $1.0583.
Rand takes Fitch downgrade in its stride
The rand was weaker on Monday morning‚ but still maintained relative composure‚ taking last week’s downgrades in its stride.
On Friday‚ Fitch condemned SA’s foreign-currency and local-currency denominated debt to subinvestment grade‚ setting off the fear of fund outflows.
“The rand has stabilised but‚ rather than following the normal pattern of stability to recovery‚ we are concerned that it could come under pressure again at the start of this week‚” Rand Merchant Bank John Cairns said in a note.
The Fitch decision followed that of S& P Global Ratings in downgrading the country’s credit rating‚ capping an eventful week that also featured nationwide protests over the Cabinet reshuffle.
“Losing not only our foreign currency investment grade rating‚ but also the local currency investment grade rating is a blow to the economy‚” said NKC Research analysts.
At 9am‚ the rand was at R13.8470 to the dollar from Friday’s R13.7508‚ R14.6549 to the euro from R14.5630 and R17.1650 to the pound from R17.0383
The euro was unchanged at $1.0583.
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