Investors braced for more rand volatility after R18/$ is breached on junk status rating
Local currency has lost about a fifth of its value against the US currency so far in 2020, having begun the year at around R14/$
Analysts braced for more volatility in the rand after the currency breached R18/$ for the first time on Monday as investors digested the implications of the country losing its last investment-grade rating.
This was despite the rand coming off its worst levels by the end of the day, while bonds, which bore the brunt of the negative sentiment last week, gained. The JSE gained with its global counterparts, which got support from US stimulus, lower oil prices and efforts globally to accelerate testing for coronavirus, which has brought the world economy almost to a halt.