Picture: REUTERS
Picture: REUTERS

The rand was slightly firmer against major global currencies on Monday morning, holding onto a weekend relief rally after Moody’s Investors Service opted not to review SA’s credit rating.

Moody’s is now expected to wait until after the national polls in May, with SA’s position on global bond indices safe for now.

At 9.50am the rand had firmed 0.19% to R14.3129/$, 0.22% to R16.084/€ and 0.11% to R18.7038/£. The euro was flat at $1.1238.

The benchmark R186 government bond was bid at 8.55% from 8.595% — its highest level in 10 months.

Net flow into SA’s bond market totalled R1.8bn last week, according to JSE market statistics.

Now that Moody’s had passed, SA bonds are on the front foot, and the next issue will be the May 8 elections, said Sasfin Wealth fixed-income trader Alvin Chawasema.

The rand has gained about 20c against the dollar since its close on Friday.

Global focus remains on Brexit, with another series of votes scheduled by the UK parliament for this week. There is still no clarity on what will happen next, and a range of options remains, including a second referendum or even a general election.

Some focus is also on the US-China trade war, with Chinese officials heading to Washington to continue last week's talks.