South Africa
Rand to come under more pressure: Experts─── 09:49 Sun, 05 Apr 2020
Market analysts expect the rand and local stocks to come under more pressure when trading on the local bourse resumes on Monday.
This follows Friday’s unexpected announcement by Fitch to further downgrade South Africa to sub-investment grade.
The move saw the rand breach the R19 mark to the US dollar. The local currency also slumped to R20,56 to the euro and R23,31 to the pound.
The rating agency made its decision after markets closed.
Market analyst Maudi Lentsoane says markets are likely to fully factor in the decision on Monday.
“The rand has taken a big knock, we are currently trading above R19. The Fitch downgrade came as a big surprise, the Moody’s one, perhaps not so much of a surprise it was widely expected, potentially we could even see R20 to the dollar.”
