Rand extends Moody’s relief rally
The local currency has gained almost 20c since the credit agency opted not to review SA’s credit rating
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...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.